Nationwide waivers collar clause and cuts SVR to 4 percent

Nationwide Building Society said last night it would cut its Standard Variable Rate SVR by 0.67 and waive the collar clause in its existing tracker mortgage rates. Nationwide have vowed that they will pass any future cuts on in full. This now put Nationwide’s Standard Variable Rate SVR at 4 percent.

By Nationwide ignoring the collar (floor) clause, it means that the UK’s biggest Building Society has passed on the full rate reduction to its customers on existing tracker mortgage products that are pegged to the Bank of England Base Rate. Nationwide had a collar clause in its terms stating if the Bank of England base interest rate falls below 2.75 percent they can opt out of passing the fall rate cut on.

This follows the move by Halifax; they also said customers that have a tracker mortgage with them will also benefit from the whole rate cut made by the Bank of England Monetary Policy Committee. However Halifax is only reducing their SVR by 0.25 percent, 0.75 percent less than what the government has urged banks to pass on.

Source: Walesonline Family Guy Presents: Stewie Griffin – The Untold Story release

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