Cash point

Good news from Nationwide Building Society for borrowers and savers on the back of the expected base rate rise later this week.

It is reducing rates on fixed-rate mortgages by up to 0.50% – that’s double the anticipated 0.25% base rate rise on Thursday – for both house purchases and those remortgaging.

It now has fixed-rate deals starting at 1.29% for a two-year fix with £999 fee on 40% deposits.

Existing mortgage customers can switch too and will get an additional £100 cashback as a thank you for their loyalty.

Meanwhile, if the base rate rises by 0.25%, the Society will increase interest for its savers by 0.25%. This is for customers who saw a decrease in their rate as a result of the base rate being lowered in August 2016 and includes those with a Loyalty Saver, Flexclusive ISA and Smart Junior ISA.

This is quick off the mark as financial firms usually put mortgage rates up immediately but are slow at increasing the interest for savers when the base rate goes up.