Nationwide Building Society will cut selected residential rates by up to 81 basis points, with its lowest prices starting at 3.84% — the lender’s lowest level in eight months.  

The mutual will also launch a range of fixed and tracker rate products, with a £1,499 fee.  

Highlights of its rate reductions, which come to market tomorrow (24 January), include:  

New customers moving home — reductions of up to 80bps across two-, three-, five and ten-year fixes up to 95% loan to value, plus the launch of new £1,499 fee products:     

• Five-year fixes at 60% LTV, with a £1,499 fee, at 3.85% — new product  
• Three-year fixes at 75% LTV, with a £999 fee, at 4.24%, down by 75bps  

First-time buyers — reductions of up to 74bps across two-, three-, five- and ten-year fixes up to 95% LTV, plus the launch of new £1,499 fee products:   

• Three-year fixes at 75% LTV, with a £999 fee, at 4.34%, down by 74bps   
• Two-year fixes at 85% LTV, with a £1,499 fee, at 4.56% — new product  

Remortgages — reductions of up to 80bps across two-, three-, five- and ten-year fixes up to 90% LTV, plus the launch of new £1,499 fee products:     

• Three-year fixes at 75% LTV, with a £999 fee, at 4.50%, down by 39bps   
• Two-year fixes at 60% LTV, with a £1,499 fee, at 4.33% — new product  

The lender will also cut selected two-, three-, five- and ten-year switcher rates at 95% by up to 81bps, with rates starting from 3.84%.   

It adds that switcher rates will be the same or lower than remortgage equivalents.    

The business will reduce rates for existing customers moving home by up to 80bps and introduce a range of products with a £1,499 fee, with rates starting from 3.85%.   

It adds that rates for additional borrowing will be cut by 81bps, starting from 3.84%.  

Nationwide Building Society director of home Henry Jordan says: “These latest changes mean we are now offering sub-four per cent rates for the first time in eight months.    

“These reductions will ensure that we have some of the lowest rates on the market for all types of borrowers whether it be FTBs, home movers, or those looking to remortgage, or switch deals.”     

John Charcol head of marketing Nicholas Mendes adds: “Nationwide latest reprice goes against expectations and market trend in recent days, with a range of rate reductions and a new headline 3.84% for existing client looking for additional borrowing. 

“Nationwide have also added a range of new products which is particularly attractive for first time buyers and home mover.  

“We’re starting to see certain lenders moving away from the pack now as lenders assess their risk appetite.”