Borrowers with Dunfermline Building Society are set to receive a boost in November when their monthly mortgage payments fall.
Around 7,800 borrowers who have a standard variable rate mortgage with Dunfermline will see their interest rate drop from 5.19 per cent to 3.99 per cent.
The reduction is due to Dunfermline’s parent company, Nationwide Building Society, aiming to bring its subsidiary companies into line with its own standard mortgage rate (SMR). Nationwide took over Dunfermline, Cheshire and Derbyshire Building Societies in 2009.
Dunfermline mortgage customers in Scotland, England and Northern Ireland on the current SVR will be receiving letters during October detailing the changes. The letter will confirm the new lower mortgage rate, their reduced monthly payments and provide a full break-down of how the new rates are being applied to their existing Dunfermline mortgage loan.
For example, customers on the current Dunfermline SVR of 5.19 per cent with a £100,000 mortgage, making monthly payments on a capital and interest basis, will be paying £595.71 per month. The revised payments, based on the new SVR of 3.99 per cent, will be reduced to £527.28.
Tracie Pearce, head of mortgages at Nationwide, said: “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.”
