Nationwide: No further cuts to tracker mortgage interest rates
Jan 05, 2009 | Comments 0
Nationwide Building Society has said that it will not cut the interest rate on its tracker mortgage products any further, even if the Bank of England cut the base rate, according to reports from the BBC.
This is due to the collar clause which stipulates that the UK’s largest building society do not have to drop the rate lower than 2.75 percent on their tracker mortgage range, this is to effect 250,000 of its customers.
Nationwide have said in order to protect its savers they will not cut the rate any further, however back in December Nationwide decided not to enforce this rule when the Bank of England cut the interest rate to just two percent.
It’s widely thought that the Bank of England Monetary Policy Committee will cut the rate further when they meet next week.
Filed Under: Interest Rates