The Nottingham has reduced rates across its residential purchase and remortgage selection by up to 40 basis points.

The headline rate cut occurs on the lender’s 90% LTV five-year fix, which has gone from 3.60% to 3.20%. At the same time, the 90% LTV five-year fix with a £999 fee has been cut from 3.30% to 3%.

Meanwhile, for first-time buyers, the 95% LTV five-year fix has been cut from 3.85% to 3.70%.

The lender has also cut the rate on its 80% LTV two-year fix, which has gone from 2.25% to 1.95%.

And the large loan product, which commands a minimum loan size of £350,000 and a £999 fee has been cut from 1.85% to 1.65%.

Nottingham head of intermediary sales Nikki Warren-Dean says: “These latest rate reductions put us in a very competitive position and, most importantly of all, cater for people looking to step onto or along the property ladder – or even stay where they are but on a better priced deal – whatever their needs.