The Nationwide Building Society is tomorrow (13 May) replacing its current £500 product fee discount with a £500 cashback available to all first time buyers.

Previously, those first time buyers choosing a Nationwide mortgage deal with a £999 fee were eligible for a £500 discount. Now a £500 cashback will be available on all first time buyer products.

The first time buyer cashback is offered in addition to any cashback provided through Nationwide’s Save to Buy, which offers a cashback of up to £1,000 to savers taking out a Save to Buy mortgage, or Flexclusive mortgage deals, which offer the option of a £250 cashback. It will be paid directly to the customer’s bank account within a month of completion.

At the same time, 10 year fixed rate mortgages have been cut by up to 0.65 percentage points for existing Nationwide mortgage customers looking to switch to a new deal, as part of the Society’s Loyalty Rate Mortgages initiative to offer the best rates on the high street to existing customers.

Rates for 10 year fixed rate deals start at 3.04% for products up to 70% loan to value (LTV).

Henry Jordan, Nationwide’s head of mortgages, said: “Setting up home for the first time can prove to be a costly experience.  By introducing a £500 cashback for all first time buyers, on top of the various other great options we have to support these customers, Nationwide aims to provide additional support when it is needed most.

“In addition, the Loyalty Rate Mortgages initiative continues to benefit our existing customers, with competitive 5 and 10 year fixed rate deals for those looking for payment security over the longer term.”