Nationwide cuts its rate to 7.95%...

The Nationwide Building Society, the second-largest in Britain, escalated the mortgage price war yesterday by cutting its loan rate to a new market low of 7.95 per cent.

The Nationwide's move came as Barclays became the first clearing bank to join in the price stampede and lower rates to 7.99 per cent for its own borrowers. Other high street banks say they may follow.