Nationwide BMR - can then change it without Base Rate rise

dave333

I am due to drop from my fixed rate at 5.48% to Nationwide's BMR at 2.5% shortly :j

I see the BMR as a lifetime tracker at 2% above base but is there anyway that Nationwide can increase the 2%?

I'm just wondering if there is anything in the t&c's to allow them to raise the rate without a Bank of England base rate change...

DannyboyMidlands

What "base" does it track?

dave333

DannyboyMidlands wrote: »

What "base" does it track?

The Bank of England Base Rate...

kingstreet

anything in the t&c's to allow them to raise the rate

No there isn't. If there was, it would have been done by the likes of C&G and Nationwide already.

Nationwide has done all it can by sending newer borrowers onto its 3.99% SVR.

Eventually, everyone will fall-off the BMR as their mortgage ends or they remortgage elsewhere.

DannyboyMidlands

Just asking because some lenders have their own base rate which can do what it likes.

Yours seems clear cut and a good deal so I'd stick with it. Interestingly, people who took out a mortgage after you get a much worse deal (currently 3.99% and no upper limit). From their website, BMR:

Upper limit or cap:



Guaranteed not to be more than 2% above Bank of England base rate

harvey115

Seems to be a very good deal indeed, but BoE is announcing sharp up-rise in mortgage rates due tot he Eurozone crisis. Not sure if BoE base rate would move up, but many SVR's would be moving up possibly...

Thrugelmir

dave333 wrote: »

I'm just wondering if there is anything in the t&c's to allow them to raise the rate without a Bank of England base rate change...

All mortgage contracts contain an exceptional circumstances clause.

So if the NW found itself in the position of breaching fiduciary regulations. Then the Directors would be duty bound to take appropriate action. In order to stabilise the situation.