The Nationwide Building Society is cutting rates for both house purchases and remortgages.

Fixed rates have been reduced by up to 0.50 percentage points, now starting at 1.29%. These rates are also available for existing members looking to switch, with an additional £100 cashback as a loyalty bonus.

In the event of a Bank Rate rise on Thursday, the Society’s Base Mortgage Rate (BMR) and Standard Mortgage Rate (SMR) products will increase. These rates would be 2.5% and 3.99% respectively, on the assumption of a 0.25% rise.

Variable rates linked to the Bank Rate from Nationwide’s specialist lending subsidiaries, including The Mortgage Works, would also increase by 0.25 percentage points if the Bank Rate rose. Reversing the change made as part of the August 2016 reduction.

Should the Bank of England announce a rise in Bank Rate on Thursday by 0.25 percentage points, Nationwide will be increasing savings rates by 0.25 percentage points for all members who received a reduction of 0.25 percentage points as a result of the Bank Rate reduction in August 2016, including the Society’s most popular products.

Chris Rhodes, executive director of products and propositions, said: “With a Bank Rate rise anticipated, we have decided to take early steps to offer improved mortgage products, while at the same time announcing the impact on members’ mortgages and savings rates.

“This is to give clarity to our members and ensure that we can continue to offer good value for both mortgage and savings. Savers in some of our most popular products, such as Loyalty Saver and Flexclusive ISA, will benefit if Bank Rate increases.”