5 Dec

Lender in tracker rate waiver

Lender in tracker rate waiver

A major mortgage lender has decided to waive its normal floor rate for tracker mortgages in order to pass on the Bank of England base rate cut in full.

Nationwide has said that the 2.75 per cent minimum rate will not be applied to its range, a limit that was put in place four years ago.

The building society's chief executive, Graham Beale, commented: "It is clear, fair and reasonable that in the very challenging financial environment that many people are experiencing, waiving the floor in this way is the right and proper thing to do."

Another lender to pass the rate on in full is Lloyds TSB and its subsidiary Cheltenham & Gloucester.

The bank said it would apply the rate to both tracker and standard variable rate products, noting that the former category of home loans does not have a set minimum rate.

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