Nationwide will cut selected residential home loan fixed-rate loans by up to 18 basis points, while West Brom Building Society brings back three-year fixes.  

The country’s largest mortgage mutual will reduce rates on various two-, three- and five-year ranges for new and existing customers, with its lowest rate now at 3.80%. 

The move comes hours after the Bank of England left the base rate unchanged at 4%.

Highlights of Nationwide’s reductions, which come to market on Friday, include: 

• First-time buyer three-year fixes at 95% loan to value, with no fee, will be 5.21% — down by 18bps 

• FTB three-year fixes at 85% LTV, with a £999 fee, will be 4.34% — down by 15bps 

• Existing and new customers moving home offers include two-year fixes at 90% LTV, with no fee, will be 4.52% — down by 16bps 

Trinity Financial product and communications director Aaron Strutt says: “It is great to see Nationwide lowering rates again and offering two-year fixes from 3.80% and five-year fixes from 3.94%.  

“Most of the big lenders have been pushing up their fixes recently, so this is a welcome reversal from the price hikes we have been seeing.  

“Many of Nationwide’s competitors will probably look at this move and wonder how they are improving their pricing, but as we know, Nationwide like to top the Best Buy tables to increase competition in the market. There are still decent rates to choose from at the moment.” 

Nationwide senior manager, mortgages, Carlo Pileggi adds: “These latest changes will be particularly good news for those looking to move home, with rates now starting from 3.80%, and for first-time buyers as we make a wide range of cuts across those product ranges”.

Meanwhile, West Brom says it has introduced a new three-year 90% LTV product at 4.69%, to “support more customers entering the three-year market”. 

It has also made two reductions to its shared ownership two-year 95% LTV range.  

One loan has been reduced by 26bps to 4.68%, while another two-year option has been trimmed by 3bps to 5.11% and now offers £500 cashback. 

West Brom product manager John Phillips says: “Shared ownership is a core part of our purpose-led lending, and we remain committed to providing competitive products that make a real difference for customers.”