Nationwide Building Society has cut rates across its fixed and tracker products by up to 40 basis points.

This leaves two products – a homemover mortgage for new customers and a remortgage – at 0.87%, the lowest rate the lender has ever offered.

Specifically, the new borrower mortgage for homemovers and the remortgage are both two-year fixes at 60% LTV with £1,499 product fee, where a 4 basis point rate cut apiece leaves each mortgage at 0.87%.

Aside from this, Nationwide has made the following reductions for new borrowers moving home:

• The 60% LTV two-year tracker with £999 fee has had 40 basis points removed, leaving it at 0.99%
• The 75% LTV two-year fix with £1,499 fee has been reduced by 4 basis points to 1%
• The 85% LTV five-year fix with £1,499 fee has been cut by 8 basis points to 2.16%
• The 95% LTV three-year fix with £999 fee has had 25 basis points chopped off, giving a rate of 2.99%.

For first-time buyers, Nationwide has made the following cuts:

• The 60% LTV two-year tracker with £1,499 fee has received a 20 basis point cut to 1.09%
• The 75% LTV two-year fix with zero fee has been cut by 30 basis points to 1.44%
• The 75% LTV three-year fix with £999 fee has been cut by 5 basis points to 1.14%
• The 85% LTV five-year fix with £1,499 fee has been reduced by 4 basis points to 2.20%
• The 95% LTV two-year fix with £1,499 fee has had 25 basis points removed, bringing the rate to 2.99%

And other than the headline rate, changes to the lender’s remortgage range comprise:

• The 60% LTV two-year tracker with £999 fee receiving a 40 basis point cut to 0.99%
• The 75% LTV two-year fix with £999 fee having a 13 basis point cut to 0.99% as well
• The 80% LTV three-year fix with £999 fee having 9 basis points cut to bring its rate to 1.59%
• The 85% LTV five-year fix with £999 fee receiving a 5 basis point cut to 2.29%

Nationwide director of mortgages Henry Jordan says: “As one of the largest lenders in the UK we always keep our rates under review to ensure we can maintain our competitive position in the market.

“These latest reductions see the society launch its lowest ever new lending mortgage rate, which will offer those looking for a new deal one of the best rates available.

“However, reductions have been made at all LTV levels so whether someone is buying a new home, remortgaging their existing property or getting a further advance to improve their home we have a range of mortgages on offer to suit their needs.”

The last few months have seen the mortgage rate war increase to red-hot levels: To give just two examples, on 6 August, Halifax brought out a two-year fix at 0.83% while Barclays is now offering a 10-year fix at 1.99%, the lowest it has ever done for this type of deal.