Nationwide Building Society is to cut rates tomorrow by up to 0.84%, as well improve products available to existing customers coming to the end of their deal.

First time buyers can choose between a bigger discount on the reservation fee, changing from £250 to £500, or a £250 reservation fee discount plus free legal fees.

The Society is also introducing a combined reservation and legal fee-free option which is designed to help those who want to move home but are deterred by the cost of the initial fee. This option will be available on the two-year fixed rate available from 4.28% (up to 70% LTV) and on a new two year tracker available from 3.48%1 (up to 70% LTV).

For existing customers coming to the end of their deal, In addition to low rates which do not increase with a higher loan to value (up to 95%) and trackers which are capped at 3.99%, the Society is reducing the fee and rates on its most popular products. The two-year fixed rate with no fee is to be reduced by 0.19% to 3.99% (up to 95% LTV), while the two-year fixed rate with £495 fee will be reduced by 0.10% to 3.79% (up to 95% LTV).

It is also introducing a new three-year fixed rate with no fee at 4.64% (up to 95% LTV) while the three-year fixed rate with fee is to be reduced by £500 to £495 at 4.49% (up to 95% LTV).

Andy McQueen, mortgage director at Nationwide, said: “The combination of rate cuts