Nationwide rates cut

Date:Thursday 16th October 2008

Nationwide Building Society has announced that it is to reduce its base mortgage rate (BMR) by 0.3 per cent.

The lender, which has appeared to stand up to the ongoing economic crisis better than most of the UK's financial institutions, suggested that the decision has been made taking into account the 0.5 per cent cut

made by the Bank of England's monetary policy committee (MPC) to the country's base rate last week.

Mortgages spokesman Matthew Carter claimed that Nationwide's BMR "has been consistently lower than the average" in recent times and the rate reduction will lead to its standard mortgage rate becoming "the lowest on the high street".

The decrease will be implemented from November 1st.

Nationwide is not the only lender to have reduced its mortgage rate this week due to the MPC's decision.

Yesterday, the Co-operative Bank revealed that it is to cut its BMR by 0.5 per cent.