The Nationwide Building Society has unveiled a new 10-year fixed rate deal which it claims is the lowest available in the market.

It is available at up to 60% LTV and has been cut by 0.55 percentage points to a rate of 2.94% for new mortgage customers, and 2.8% for existing mortgage customers.

It comes with a £999 product fee, reduced to £499 for first time buyers. Remortgage customers benefit from free standard valuation and the choice between free standard legal work or £250 cashback.

As part of a range of reductions for those looking for longer term fixed rates, five-year fixed rate deals have also been reduced by up to 0.40 percentage points, with rates starting from 2.44% for new mortgage customers.

A range of two and three-year fixed deals have also been reduced. The two-year fixed rates now start at 1.74% for new mortgage customers and both three-year fixed rates and the four-year fixed rate Flexclusive deals, available only to Nationwide’s main current account customers, both now start at 2.24%. 

Existing mortgage customers benefit from at least an additional 0.10 percentage point discount on all new customer rates, with two-year fixed rates for existing customers now starting at 1.64% – Nationwide’s lowest ever fixed rate.

“There has been a growing trend of customers opting for longer term fixed rates to ensure certainty of monthly mortgage payment, particularly ahead of any rise in interest rates, with the recently-introduced 10-year fixed rate mortgages proving a popular addition to the range,” said Richard Napier, Nationwide’s director of mortgages and savings.

“This competitive range of new fixed rate mortgage deals is likely to appeal to both first time buyers and those looking to remortgage by ensuring longer term security of mortgage payments.”