As of 1 January 2008, the lender's base rate will be decreased by 0.25 per cent - taking it from 7.24 per cent to 6.99 per cent.
This will leave it around 0.50 per cent lower than the standard variable rates of most other major high street lenders assuming that they also decrease their SVRs in line with the Base Rate.
Assuming other major lenders decrease their SVRs in line with the decrease in the Base Rate, the savings a customer would make with Nationwide on a £100,000 mortgage could be up to £12,000 over a 25-year term.
Tracker mortgages will move in line with the Bank of England Base Rate and this change will also be effective from 1 January 2008.
