On Wednesday 11 March, the Bank of England decreased the base rate from 0.75% to 0.25%.
Here's how this affects our mortgage rates:
Base Mortgage Rate (BMR)
The BMR (for mortgages reserved through Nationwide on or before 29 April 2009, through Derbyshire on or before 30 May 2009 or through Cheshire on or before 14 June 2009) will reduce to 2.25% (previously 2.75%) from 1 April 2020.
Standard Mortgage Rate (SMR)
Members who are on the SMR will see a decrease to their rate to 3.74% (previously 4.24%) from 1 April 2020.
Tracker rate mortgages
Members with an existing tracker rate mortgage will receive the full 0.50%* reduction from 1 April 2020.
New and pipeline applications
All Mortgage Illustrations and Offer documents will reflect the new rates of trackers and reference to BMR and SMR from 13 March 2020.
We'll write to anyone on a tracker rate or BMR account by the end of March confirming their new rate and mortgage payment amount. Those on SMR will also receive a letter by the end of March.
Getting in touch
We anticipate high call volumes in our contact centres, so for case updates, please login to NFI Online.
*If your client is currently on a Nationwide tracker rate mortgage, in most cases their rate and payments will reduce by the full amount of the base rate decrease. If their rate and payments are changing, we'll write to them and let them know.
If their tracker has a floor, it means that when the Bank of England base rate falls below a certain level their tracker rate won't reduce. Their rate will stay the same until the base rate increases above that level. They can check if they have a tracker floor on their mortgage offer.