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Nationwide waives tracker floor
5 December 2008 16:02
Nationwide Building Society has announced that it will not be enforcing its floor on mortgage tracker products.
The news comes in the wake of the Bank of England announcing its one per cent rate cut earlier in the week, taking the current interest level to two per cent.
After internal discussions, officials at the lender have opted not to enforce its 2.75 per cent floor, meaning that base rate customers will benefit from the full reduction.
Graham Beale, chief executive of Nationwide, said that it had been the lender's policy for the last four years to pass on base rate cuts to tracker products in full.
He added that in such a challenging financial climate, foregoing the floor on its mortgage packages was in the best interests of customers.
Earlier in the week, HSBC was one of the first high street lenders to announce that it would be passing on the new rate in full to its standard variable rate mortgage holders.
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