Nationwide Building Society is reducing rates by 15 basis points on its 85 per cent loan-to-value deals tomorrow, while lifting some restrictions on its 90 per cent LTV range.

As previously announced, its deals for borrowers with a 10 per cent deposit will once again be available to home movers and not just first-time buyers.

The lender will also allow buyers to use a gifted deposit from family when borrowing at 90 per cent LTV, bringing an end to recent restrictions.

However, these loans will still be capped at £500,000 over a maximum 25-year term. 

Rates starting from 3.49 per cent for a two-year fixed mortgage with a £999 fee.

From tomorrow, the following reduced rates will be offered at 85 per cent LTV to  first-time buyers, home movers, remortgage borrowers and existing customers:

• Two-year fixed rate reduced to 2.84 per cent with a £999 fee
• Two-year fixed rate reduced to 3.09 per cent with no fee
• Two-year tracker reduced to 2.94 per cent with a £999 fee
• Two-year tracker reduced to 3.19 per cent with no fee

Nationwide director of mortgages Henry Jordan says: “Despite the pandemic, activity in the housing market remains high as people seek to take advantage of the stamp duty holiday. 

“Two-year fixed and tracker rates remain some of our most popular products and these latest changes will help us remain one of the most competitive providers on the market.

“Since we re-entered the 90 per cent loan to value market in July, we have been the only major lender to offer such mortgages without volume restrictions and as a further show of support for the housing market we are now able to expand our lending at this loan to value to help house purchasers and existing customers moving home as well as first-time buyers.”