Mortgage Loan lender puts a stop to further savings
06/01/09
Nationwide the high street mortgage loan lender has decided it can no longer offer customers the benefits of any further Bank of England interest rate cuts.
Around a quarter of million customers who are on the lenders tracker mortgage product will no longer be passed on opportunities for savings despite the recent pledge from the Government to make more efforts to help borrowers. Nationwide’s tracker mortgage product is capped at 2.75% to prevent it falling any further should there be any further expected interest rate cuts.
In contrast, Nationwide say that “Savings rates are at a historic low and this move means we will not be forced into a position where we could have to cut savings rates more aggressively than we would otherwise like to.”
The stance from Nationwide has already set stage for other lenders to now replicate the same moves for their own tracker mortgage products.
