Nationwide decides not to pass on any more rate cuts

poppy10_2

Nationwide has confirmed it is to enforce a "floor" of 2% on all its tracker mortgages, meaning that even if the Bank of England cuts rates again next week, they will not reduce the cost of their mortgages any further.

A Nationwide spokesman said: "We have to balance the interests of our 1.4m borrowers with the interests of our 10m savers and so we will set a floor of 2pc on our trackers, whatever the Bank of England may say next week."

Last month Nationwide decided not to enforce the clause in their mortgage products, which would have enabled them to keep rates above 2.75%. Now Nationwide has decided enough is enough.

Senior executives are braced for criticism but say they must hold rates to protect the position of savers, who outnumber borrowers by seven to one.

Cat695

I actually think this is a good idea.....why should the saver have to pay for the borrower.

chucky

Cat695 wrote: »

I actually think this is a good idea.....why should the saver have to pay for the borrower.

depends if you're the Saver or the Borrower... i'm assuming you're the Saver

Cat695

chucky wrote: »

depends if you're the Saver or the Borrower... i'm assuming you're the Saver

oh yes but thankfully NOT with nationwide...I'm still getting 6.25% at the mo

Mozette

I've got a tracker with Nationwide and was quite prepared for it to not go any lower than 2.75% as it said in the T&C. It's now 2.24%, so a real bonus. I'm quite happy for it not to go any lower so that those people who rely on their interest payments to live on don't end up with nothing. I never imagined it would go this low, so to be honest I'm well happy with it.

treliac

Well, they're firing a warning shot to the B of E - it ain't gonna work !!

treliac

poppy10 wrote: »

Nationwide has confirmed it is to enforce a "floor" of 2% on all its tracker mortgages, meaning that even if the Bank of England cuts rates again next week, they will not reduce the cost of their mortgages any further.

A Nationwide spokesman said: "We have to balance the interests of our 1.4m borrowers with the interests of our 10m savers and so we will set a floor of 2pc on our trackers, whatever the Bank of England may say next week."

BTW, what happened to the Bank of England's alleged independence in deciding interest rates?

maxmerlin

treliac wrote: »

BTW, what happened to the Bank of England's alleged independence in deciding interest rates?

Ok, so savers out number morgage holders 7 - 1 but on average your morgage is going to be around 50 - 100 k........ how many have got this amount of savings?? I would prefer them to cut the rates again so I could lower the term of my mortgage. These banks expect the goverment to help them out when they are in trouble, but they are not repaying the favor to the goverment!! Come on Nationwide start playing the game!

Gorgeous_George

Let's get one thing straight.

It was taxpayers who bailed out those banks that were incompetent.

We don't want banks to repeat their incompetence by offering uncompetetive deals. As a taxpayer (a borrower and a saver) I do not want to rob the taxpayer of any more money. We couldn't do it for the miners, why should the banks be a speacial case? Next time, let them rot.

GG

feisty1

maxmerlin wrote: »

Ok, so savers out number morgage holders 7 - 1 but on average your morgage is going to be around 50 - 100 k........ how many have got this amount of savings?? I would prefer them to cut the rates again so I could lower the term of my mortgage. These banks expect the goverment to help them out when they are in trouble, but they are not repaying the favor to the goverment!! Come on Nationwide start playing the game!

Nationwide did not receive money from the Government

maxmerlin

treliac wrote: »

BTW, what happened to the Bank of England's alleged independence in deciding interest rates?

Ok, so savers out number morgage holders 7 - 1 but on average your morgage is going to be around 50 - 100 k........ how many have got this amount of savings?? I would prefer them to cut the rates again so I could lower the term of my mortgage. These banks expect the goverment to help them out when they are in trouble, but they are not repaying the favor to the goverment!! Come on Nationwide start playing the game!