Feeling the Pinch? Revitalise your Finances with our FREE 12 week guide.
Product Guides
Financial Detox
Personal Finance News
What our customers say...
“I find Moneynet a very useful tool and have recommended it to my friends and my fiance for various financial information they have sought.”
The information in this article was correct at the time of publication and contains time sensitive data and links, it may not be accurate at the time of reading.
Nationwide defies government and introduces interest 'floor'
Published: 02/01/2009 |
|
Nationwide has defied the government's plans to lower borrowing costs by introducing a 'floor' on its tracker products, below which rates will not fall. According to reports, the lender has decided the lowest it will go is two per cent and therefore will not pass on any further reductions, should they be announced next week. The building society had mortgages that were guaranteed to cost less than the Bank of England's base rate, but will now enforce an earlier clause, which will affect more than 250,000 borrowers, it has been reported. "Savings rates are at an historic low and this move means we will not be forced into a position where we could have to cut savings rates more aggressively than we would otherwise like to," its spokesperson said. The lenders' announcement could lead to a clash with the government, which is keen to get free up money for mortgages by cutting rates. A spokesperson from the Treasury said: "The chancellor has repeatedly made clear that he expects lenders to do their best to help their customers through these difficult times."  |
Moneynet is a trading name of Sterling Business Consultants Limited, 8-10 Homesdale Road, Bromley, BR2 9LZ which is authorised and regulated by the Financial Services Authority. This site is intended for UK residents only.
