Nationwide update

Posted on 27 April 2009 by Drew

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With effect from Thursday 30th they are launching a new variable rate, the Standard Mortgage Rate (SMR). The SMR will be their new revert rate and will launch with a variable rate of 3.99%. The SMR comes with the full range of flexible features including, overpayments, underpayments and borrow back.  All products from Thursday will revert to the SMR at the end of the deal period.
 
This new 'revert to' rate no longer has any cap on how high they can set it, unlike the current BMR which is capped at no more than 2% over base. They claim that having this extra scope on their 'follow on rate' to will enable them (at some undisclosed point) to launch more competitive tracker rates. Bearing in mind they are effectively increasing their 'revert to' rate by 1.49% you would certainly hope so, but I wouldn't count on it...

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