Nationwide halts passing rate cuts to trackers

In order to protect savers from future aggressive rate cuts, Nationwide said it will not reduce rates on the mortgages any further in a move likely to affect 250,000 customers. Its announcement comes a week before the MPC meets to discuss interest rates, with many analysts predicting a further cut of 0.5% or even 0.75% from the current 2% rate. Nationwide's decision will affect tracker customers with a 2.75% collar on their loan rate. It will not impact on people who have taken out a loan since November as they have a lower floor of 1%. Some loans in the group's existing tracker book ...