The Mortgage Works comments on decision to hold Bank Base Rate

Commenting on today's decision by the Bank of England to maintain bank base rate at 5%, Andy McQueen, managing director of The Mortgage Works and UCB Home loans, has suggested changing sentiment in the City means the expected outlook for future interest rates has altered significantly in recent weeks.

He commented: "While today's decision was widely expected, the mood in the City has been changing. In the last month we have seen a shift from a certainty that rates would increase, to an expectation now that they could be lower than previously thought over the next two years. This change, which has been reflected in forward swap rates has mainly been influenced by the worsening state of the economy, particularly highlighted in recent weeks by the news of redundancies coming from the house-builders. It is this worsening economy which will prompt the Bank of England to maintain, and potentially even drop, rates going forward, despite the threat of above target inflation."

Notes to editors:

Intermediaries requiring further information about the products and services offered by The Mortgage Works should contact their business development manager or visit www.themortgageworks.co.uk

The Mortgage Works is a specialist lending subsidiary of Nationwide Building Society. Nationwide is a mutual building society, which is owned by its members.  As such, it aims to be different from the banks.  Members are actively encouraged to play a strong role in their society by voting at the AGM in person, in any one of Nationwide's branches, online at www.nationwide.co.uk or by post, each year.

This year's AGM will be held in Birmingham at the ICC at 11am on Thursday 17 July.

For further information please contact:

Lucinda Devine, Communications Manager, Nationwide Building Society

020-7826-2188, 07725-680-865, Lucinda.Devine@nationwide.co.uk