Nationwide's BMR is already amongst the lowest on the high street and this move will maintain that position, as well as reduce monthly payments for a borrower with a £150,000 interest only mortgage by £62 a month*. The standard variable rates of the Derbyshire and Cheshire building societies will also fall to 3.00% from 1 March 2009.
Borrowers who took out a Nationwide tracker mortgage from 1 December 2008 will also benefit from the full 0.50% cut. A borrower with a £150,000 repayment mortgage on Nationwide's two year tracker will see a reduction of £40 per month as a result.**
Andy McQueen, mortgage director at Nationwide, said: "All existing Nationwide borrowers with a Base Mortgage Rate will benefit from a reduction in their monthly mortgage payments. We've been consistent in reducing our BMR since the series of base rate falls started in October last year, and in fact, our BMR is up to 1.5% less than the standard variable rate offered by some other high street lenders.
"Our BMR is guaranteed never to be more than 2% above the Bank of England Base Rate so we will automatically pass on any further rate reductions."
