Britain’s largest building society, Nationwide, is making it widely known they will be passing along rate cuts to its current mortgage customers and shielding savers from damage caused by the recent base interest rate cut. This statement has been issued in the wake of last week’s Bank of England announcement that the once historic low interest rate is now being cut from 0.5% to an even lower 0.25%. Mortgage holders will only benefit from the cut, but savers are no doubt concerned their hard-earned savings will be earning less interest.

The cut in interest rate will have a negative effect on its ability to make the same amount on margins going forward. Experts claim this drop in interest rate will make it difficult for many lending institutions to maintain the same level of margins if they choose to pass on savings to customers holding mortgages.

As one building society manages how best to pass along savings to existing mortgage holders, current homeowners looking to remortgage are enthused they chose to wait on starting the process.

Many who were on the fence regarding the decision to start a remortgage are now looking forward to completing the process and seeing even bigger savings occur with the cost of their monthly mortgage payment.

Homeowners will likely see even bigger savings by choosing to proceed with a remortgage now. Interest rates were at very competitive levels before cutting the base rate. Now, lenders who were offering a low rate connected to a remortgage will likely go even lower.