A leading building society has announced it is to adjust the terms and conditions of its tracker mortgages following the one per cent reduction in interest rates announced yesterday by the Bank of England.
Nationwide is to remove the 2.75 per cent floor rate on its tracker mortgages in order to enable customers to receiver the full benefit of the recent cut.
Chief executive of the lender Graham Beale explained that the floor had been in place for the last four years, but added: “It is clear, fair and reasonable that in the very challenging financial environment that many people are experiencing, waiving the floor in this way is the right.”
The news may be welcomed by those with tracker mortgages who are looking to improve their debt management, as their monthly repayment may be lower as a result.
Mortgage customers with Lloyds TSB and subsidiary Cheltenham & Gloucester will also benefit from the cut, as both announced they will pass the reduction on in full.
By Tom Musk