"We have decided to take early steps to offer improved mortgage products, while at the same time announcing the impact on members’ mortgages and savings rates."
The Society says it will cut rates for both house purchases and remortgages as "customers look to secure competitive rates in the light of the uncertainty around Bank Rate".
Fixed rates will be reduced by up to 0.50%, now starting at 1.29%. These rates are also available for existing members looking to switch, with an additional £100 loyalty cashback.
In the event of a Bank Rate rise, the Society’s Base Mortgage Rate and Standard Mortgage Rate products will increase to 2.5% and 3.99% respectively, on the assumption of a 0.25% rise.
Variable rates linked to the Bank Rate from Nationwide’s specialist lending subsidiaries, including The Mortgage Works, would also increase by 0.25% if the Bank Rate rose.
Nationwide has pledged to increase savings rates by 0.25% for all members who received a reduction of 0.25% as a result of the Bank Rate reduction in August 2016.
Should the Bank of England announce a 0.25% rise in Bank Rate on 2 November 2017, the changes to existing customer mortgage and savings rates linked to the Bank Rate change will be effective from 1 December 2017.
Chris Rhodes, Executive Director of Products and Propositions, said: “With a Bank Rate rise anticipated, we have decided to take early steps to offer improved mortgage products, while at the same time announcing the impact on members’ mortgages and savings rates. This is to give clarity to our members and ensure that we can continue to offer good value for both mortgage and savings. Savers in some of our most popular products, such as Loyalty Saver and Flexclusive ISA, will benefit if Bank Rate increases.”
