Nationwide has announced plans to reduce the standard variable rate (SVR) for thousands of Dunfermline Building Society mortgage customers.
Approximately 7,800 Dunfermline customers are set to benefit from the reduction, which will see the current 5.19% SVR aligned to Nationwide's standard mortgage rate (SMR) of 3.99%.
Eligible borrowers will receive a letter outlining the changes sometime in October, which will confirm the new mortgage rate, specify their reduced monthly payments and provide a breakdown of how the new rates will be applied to their existing loan.
For a lot of customers the changes could be significant. For example, those with a mortgage of £100,000 on the current rate of 5.19% SVR will pay £595.71 per month, whereas after the rate reduction their monthly payments will drop to £527.28.
Commenting, Tracie Pearce, head of mortgages at Nationwide, said that the new rate will make a big difference to Dunfermline customers who will see a significant drop in their monthly payments.
" As we move towards bringing all Dunfermline, Cheshire and Derbyshire Building Society customers together within the Nationwide Building Society, we are in a position to pass on the benefit of a lower SVR to Dunfermline's borrowers," she said.
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