The Nationwide’s standard variable rate (SVR) is now the lowest on the high street, according to The Times. That is very good news for those borrowers with the Nationwide whose special deal is coming to an end.
Following the 0.5 per cent interest rate cut by the Bank of England, the Nationwide announced yesterday that it would be cutting 0.3 per cent from its SVR from the 1st November. That might not be passing on the whole cut but it is a lot better than some other mortgage lenders have done.
Melanie Bien, of Savills Private Finance, the mortgage broker, said: “Nationwide’s SVR was already among the lowest in the market so I think it is fair that it hasn’t passed on the full half point percentage cut in base rate. The SVR is currently the lowest on the high street and not much higher than the rate offered on some trackers and two-year fixes. On the other hand the cut in the tracker rates has to be balanced against Nationwide’s decision earlier this week to raise the margin on its trackers by up to 0.61 percentage points. The net result is that many borrowers on Nationwide’s tracker loans will be no better off.”
New borrowers will not find life as easy with the Nationwide as the society increased its minimum deposit rate from 10 per cent to 15 per cent.
The Co-operative Bank is also cutting its rates from the same date, but this time by the full 0.5 per cent.
Five million homeowners are on variable rate mortgage deals, and 800,000 of those are on the SVR. Many on an SVR could save a lot of money by contacting a mortgage advisor and remortgaging where they can to suit their personal circumstances. Following CeMAP training and achieving competent advisor status, a mortgage advisor is well suited to advise people how to get the best deal from mortgage lenders.
