As a result of the cut, the lenders base mortgage rate will stand at 2.25% and its standard mortgage rate at 3.74%.
Nationwide Building Society is set to reduce its base mortgage rate and standard mortgage rate by 0.5%.
As a result of the cut, the lenders base mortgage rate will stand at 2.25% and its standard mortgage rate at 3.74%.
The reduced rates will come into effect on 1 April.
For existing mortgage customers the building society will be reducing its tracker rate by 0.50%, however, for new borrowers it will increase its existing tracker rate by 0.15%.
Furthermore, the lender is reviewing its savings rates and it will make an announcement on the impact of the Bank of England’s base rate cut on its savings range in due course.
Sara Bennison, chief marketing officer, Nationwide, said: “This announcement gives borrowers clarity about what the bank rate reduction will mean for them.
“We understand it continues to be a tough time for savers and we are currently considering what the impact of the bank rate change will be on our variable rate accounts.
“We will announce any changes to our savers in due course, while those signed up to our SavingsWatch service will also receive notification about what any changes mean for them.
“As the government looks for ways to support people at a difficult time for the UK, we are keen to lend our weight. We have outlined a range of consider support options for members financially impacted by coronavirus, including mortgage payment holidays.
“By passing on the rate reduction in full, from 1 April 2020, we also hope to minimise mortgage costs for our members during this difficult period.”
