Nationwide is cutting fixed mortgage rates by up to 0.12 percentage points across selected products for both new and existing customers, taking its lowest rate to 3.90%.

Effective from Thursday 5 June, the reductions apply to two, three and five-year fixed rate products at loan-to-value ratios up to 90%. The changes affect customers purchasing a new home, those remortgaging to the mutual, and existing borrowers moving house. However, rates for product transfers remain unchanged, with some already starting from 3.84%.

The lender’s headline rate – a two-year fix at 60% LTV with a £1,499 fee – will fall to 3.90%, down from 3.99%. Other notable cuts include a five-year fix at 85% LTV, reduced to 4.29% for both new and existing home movers, and a two-year remortgage at 60% LTV, now priced at 3.92% following a 0.12 percentage point drop.

Carlo Pileggi, senior manager – mortgages at Nationwide, said the latest rate reductions are designed to support borrowers across the market.

“These latest reductions will be welcome news for borrowers,” he said.

“We remain as committed as ever to supporting all areas of the market, whether it’s first-time buyers, home movers or those looking for a new deal, and with our reduced rates starting from 3.90%, we aim to be front of mind.”