The Nationwide Building Society is cutting selected fixed rate mortgages at 85, 90 and 95% loan-to-value (LTV) by up to 0.20 percentage points.

The reductions are being made on a range of two, three and five-year fixed rate deals, with rates for those mortgage customers with a 5% deposit now starting at 3.99% for a two-year fixed rate mortgage with a £999 fee.

The rates for those with a 10% deposit start at 2.49%, while those with a 15% deposit start at 1.94%, both with a £999 fee.

Buyers opting for a five-year fixed rate mortgage deal will see rates reduced to 2.99% for the 85% LTV product, 3.29% for the 90% LTV product, and 4.79% LTV for the 95% product, all with a £999 fee.

All mortgage valuations are now fee-free, while first time buyers are able to access a £500 cashback to help with the cost of moving. Nationwide Flex main current account holders who are taking out a Nationwide mortgage are also eligible for an additional £250 cashback.

In addition, those customers saving through a Nationwide Help to Buy ISA are eligible for the Society’s Save to Buy mortgage range, with 95% mortgage rates 0.4 percentage points lower than the equivalents in the core range, plus additional cashbacks of up to £1,000.

Henry Jordan, Nationwide’s head of mortgages, said: “We are reducing rates for those with smaller deposits who are looking for competitive rates and payment security over a range of terms, with a focus on first time buyers who will continue to qualify for a £500 cashback. With the combination of competitive rates and access to additional benefits, Nationwide will continue to offer mortgage customers amongst the best deals on the high street. Mortgage valuations remain fee-free for all customers and Nationwide main current account customers can access a cashback of £250, both irrespective of which product they choose.

“These deals are is in addition to the discounted rates and benefits now available to Nationwide Help to Buy ISA savers taking out a mortgage with the Society, who are eligible for a package of discounted rates as well as extra cashbacks, further helping customers to secure a home of their own.”