Saturday, December 6, 2008
A success for the BoE rate cuts?
This is a contrarian posting: "Nationwide Building Society has announced that it will reduce the rates of interest on its tracker mortgages scrapping the interest rate 'floor' it had previously put in place. The building society's tracker mortgages had included the condition that the interest rate would not fall below an artificial floor of 2.75 per cent, whatever the base rate of interest might be. However, following the Bank of England's reduction in the base rate to two per cent yesterday, Nationwide have decided to scrap the floor, passing on the benefits of the cut to its tracker mortgage customers." Similar report at http://www.prudentminds.com/news/18914026/nationwide-scraps-tracker-mortgage-floor.html.