The Nationwide Building Society has cut two-year fixed rate mortgage products for those with smaller deposits by up to 0.25 percentage points, as well as selected switcher rates for Nationwide mortgage customers looking for a new deal. 

Rates for the 80% loan to value (LTV) two-year fixed rate product start at 1.89%, while for those with a 10% deposit product rates start at 3.24%. There are reductions on the two-year fixed rate 85% LTV deals for new Nationwide mortgage customers of 0.25  percentage points, with rates now starting from 2.09%.

The new two-year fixed rates are as follows:

• 80% LTV rate with a £999 fee reduced by 0.10 percentage points to 1.89%
• 80% LTV rate with a £0 fee reduced by 0.10 percentage points to 2.29%
• 85% LTV rate with a £999 fee reduced by 0.25 percentage points to 2.09%
• 85% LTV rate with a £0 fee reduced by 0.25 percentage points to 2.49%
• 90% LTV rate with a £999 fee reduced by 0.10 percentage points to 3.24%
• 90% LTV rate with a £0 fee reduced by 0.10 percentage points to 3.64%

There are further reductions for existing Nationwide mortgage customers who are looking to switch deal as part of the Nationwide Loyalty Rate Mortgages initiative, which compares the Society’s mortgage rates for existing customers to those of its top six high street competitors.

The Loyalty Rate Mortgages rates are as follows:

• 80% LTV 2 year fixed rate with a £0 fee reduced by 0.05 percentage points to 2.14%
• 85% LTV 2 year fixed rate with a £0 fee reduced by 0.10 percentage points to 2.29%
• 80% LTV 5 year fixed rate with a £999 fee reduced by 0.05 percentage points to 2.79%
• 80% LTV 5 year fixed rate with a £0 fee reduced by 0.10 percentage points to 2.94%
• 85% LTV 5 year fixed rate with a £0 fee reduced by 0.05 percentage points to 3.39%

Henry Jordan, Nationwide’s head of mortgages, said: “These reductions aim to help customers with smaller deposits to secure a competitive mortgage deal, whether they are a first time buyer, or an existing mortgage customer looking for a new deal.

“The recently launched £500 cashback for first time buyers is an additional boost for those looking to take a step onto the housing ladder, as Nationwide continues to offer extra support for the important group of customers.”

All first time buyers, regardless of product choice, will receive a £500 cashback. Existing mortgage customers benefit from at least an additional 0.10 percentage points discount on all new customer rates. Remortgage customers benefit from free standard valuation and the choice between free standard legal work or £250 cashback.