Nationwide yesterday announced it would not be following other leading mortgage lenders in passing on the full half-point cut in the Bank of England base rate to borrowers on its standard variable rate.

Instead, the UK’s largest building society will cut its variable rate – which it calls its base mortgage rate – by 0.3% with effect from 1 November. Only borrowers with a Nationwide tracker mortgage will benefit from the full 0.5% cut.

The lender, which on Monday announced it would not be taking a cash injection from the government, said: 'The decision reflects Nationwide’s continuing focus on prudent and sustainable mortgage lending.'

Financial Times