Nationwide Building Society is lowering the standard variable rate (SVR) for mortgage customers of the Dunfermline Building Society.

Approximately 7,800 Dunfermline customers will see their monthly mortgage payments reduced, as the current 5.19% SVR for Dunfermline is aligned to Nationwide’s Standard Mortgage Rate (SMR) of 3.99%.

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% 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%, will be reduced to £527.28.

Tracie Pearce, head of mortgages at Nationwide, said: “Dunfermline’s customers will benefit from a lower mortgage rate. This will make a big difference to customers who will see a significant drop in their monthly mortgage payment.

“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.”