Nationwide and Lloyds TSB pass on rate cut

Lenders have begun to pass on this week’s Bank of England base rate cut, which could help homeowners handle their debtmanagement.

Nationwide has revealed it is decreasing its base mortgage rate (BMR) from 3.5 per cent to three per cent in line with the interest rate decision.

The firm claimed that its BMR is already among the cheapest offered by a high street lender and that this cut will strengthen its position.

“All existing Nationwide borrowers with a base mortgage rate will benefit from a reduction in their monthly mortgage payments,” remarked spokesperson Andy McQueen.

He added that the building society has been “consistent” in lowering prices since the base rate began falling in October of last year.

Elsewhere, Lloyds TSB and Cheltenham & Gloucester have announced their standard variable mortgage rate will drop to three per cent in accordance with the Bank of England’s reduction.

By Jamie Price