Nationwide has announced that it will decrease its Base Mortgage Rate (BMR) from 1 December 2008 by 1.50%.

The BMR will decrease by 1.50% from 6.19% to 4.69%. Nationwide’s BMR is already one of the lowest on the high street and this move will reduce monthly payments for a borrower with a £100,000 interest only mortgage by £125 a month.

Existing tracker mortgages will also decrease by 1.50%, moving in line with the Bank of England Base Rate. This change will be effective from 1 December 2008.

Graham Beale, Nationwide’s chief executive said, “This is the right and fair course of action for Nationwide to take for all our borrowers at what is a very challenging time for everyone in the UK. Our borrowers, who already benefit from one of the lowest standard variable rates on the high street, will see their rates fall dramatically and will be substantially better off.

“As a member-owned mutual organisation we are not driven by the need to maximise profit. Without shareholders, we are driven by the needs of our members”