Nationwide is reducing rates by up to 0.70 percentage points across fixed and tracker deals.

Two year fixed rate mortgages are now available from 1.94%, three year fixed rates start from 2.39% and five year fixed rates start from 2.99%. Two year tracker rates will now start at 1.69%

Loyal, existing customers will also receive an additional 0.10 percentage point reduction whenever they make a new application to move home or switch products.

Nationwide current account customers can choose from either a four year fixed rate Flexclusive mortgage (at the same rate as the three year version available to new customers) or a three year Flexclusive tracker mortgage starting at 1.89%.

Tracie Pearce, Nationwide’s head of mortgages, said: “With increased debate around the possibility of an interest rate rise, customers are keen to access competitively-priced fixed rates and trackers.

“In particular, access to a rate of less than 2% (1.94%) for a two year fixed rate mortgage and less than 3% for a five year version show that we continue to offer some of the most competitive rates on the market. Along with our outstanding customer service record, this makes Nationwide the first port of call for the needs of both new and existing customers, even those with smaller deposits.”