The Nationwide Building Society is cuts rates by 0.15 percentage points on its two-year fixed and tracker rate mortgage products at 85% loan to value (LTV).

The new rates, which apply to first-time buyers, house purchase, remortgage and existing customers moving home, are:

• Two-year fixed rate reduced to 2.84% with a £999 fee
• Two-year fixed rate reduced to 3.09% with no fee
• Two-year tracker reduced to 2.94% with a £999 fee
• Two-year tracker reduced to 3.19% with no fee

As previously announced, Nationwide will also be expanding its lending at 90% LTV from 8 December to include loans for house purchase and for existing mortgage members looking to move home, giving them the same access to 90% LTV home loans as first-time buyers.

The Society will also remove the temporary criteria applied to fully gifted deposits and will once again allow fully gifted deposits at 90% LTV, aligning to standard policy and expanding the level of support parents can provide to their family.

They will be able to borrow up to £500,000 over a maximum 25-year term, with rates aligned with those on offer to first-time buyers at 90% LTV, including 3.49% for a two-year fixed mortgage with a product fee of £999.

Henry Jordan, Nationwide’s director of mortgages, said: “Despite the pandemic, activity in the housing market remains high as people seek to take advantage of the Stamp Duty holiday. Two-year fixed and tracker rates remain some of our most popular products and these latest changes will help us remain one of the most competitive providers on the market.

“Since we re-entered the 90% loan to value market in July, we have been the only major lender to offer such mortgages without volume restrictions and as a further show of support for the housing market we are now able to expand our lending at this loan to value to help house purchasers and existing customers moving home as well as first-time buyers.”