Nationwide cuts mortgage rates and introduces in-branch market leading savings account
The UK’s biggest building society has introduced a market-leading savings account, available in branches now. It is the first time Nationwide have offered an in-branch deal since 2007.
The new Champion Saver account pays more than five times the current Bank rate of 0.5 per cent, with a gross yearly interest of 2.80 per cent. There is an introductory bonus of 1.10 per cent, but you must have a minimum £1,000 balance and need to give at least sixty days notice.
The rate is calculated using the average from the five top branch-based instant access accounts, therefore Nationwide customers may find that their savings rate changes more often than standard savings accounts, especially if the Bank rate is frozen during next year as predicted.
More good news for Nationwide customers, as the building society cuts mortgage rates by up to 0.5 per cent for those with large deposits.
UK homeowners will benefit from the first drop in mortgage rates for a number of months. Nationwide is reducing rates on some it’s most popular mortgage loans, namely its fixed rate and tracker mortgages.
The fixed rate and tracker mortgage rates will drop by 0.5 per cent in a bid to attract ‘low-risk’ customers who can put down larger deposits.
A four-year fixed mortgage has fallen from 5.58 per cent to 5.08 per cent and a two year tracker mortgage has fallen from 3.83 points above the base rate to 2.58 points.
Lenders have been pushing up interest rates recently, in response to a sharp rise in wholesale borrowing costs. This has led to accusations of lenders widening their profit margins by increasing rates.
David Hollingworth of London & Country Mortgages suggests this may be good news for all, if other lenders follow Nationwide’s lead.
“It is great news for borrowers that Nationwide has become the first lender to cut interest rates for the first time in months. When a major lender such as Nationwide reduces interest rates it raises the spectre of other lenders following suit.”
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