Nationwide is cutting fixed mortgage rates by up to 25 basis points for first-time buyers and home movers, with the changes due to take effect from tomorrow.

The mutual said the reductions would apply across selected two-year, three-year and five-year fixed products for both new and existing customers, taking its lowest rate for home movers to 4.50%.

For first-time buyers, the cuts cover products up to 95% loan to value. Among the headline changes, its five-year fixed rate at 90% LTV with a £999 fee will fall by 25 basis points to 5.25%, while its two-year fixed rate at 60% LTV with a £1,499 fee will reduce by 24 basis points to 4.66%.

A three-year fixed rate at 80% LTV with a £999 fee will also be cut by 25 basis points to 5.05%.

Nationwide said first-time buyers completing a mortgage with the society would continue to receive £500 cashback. Borrowers buying an energy-efficient property may also qualify for up to £500 through its Green Reward scheme.

For new and existing customers moving home, the lender is also reducing rates by up to 25 basis points across products up to 95% LTV.

That includes a two-year fixed rate at 60% LTV with a £1,499 fee, down by 16 basis points to 4.50%, a five-year fixed rate at 80% LTV with a £999 fee, down by 17 basis points to 4.81%, and a two-year fixed rate at 75% LTV with a £1,499 fee, down by 12 basis points to 4.65%.

Nationwide said the latest repricing meant existing customers moving home would continue to have access to the same or lower rates than the equivalent products available to new customers.

Carlo Pileggi, head of mortgage products at Nationwide, said: “We’re delighted to be able to make cuts to our mortgage rates to support both first-time buyers and those looking to move to their next home.

“These changes apply across those ranges, with some of our largest cuts being made on higher loan-to-value mortgages, which will benefit first-time buyers looking to get onto the property ladder.”