Nationwide Building Society is reducing rates across its range tomorrow by up to 0.25 percentage points.

The lender is making even bigger cuts of up to 0.4 percentage points on its retirement interest-only deals.

Existing member switcher range reductions include:

• At 60 per cent loan-to-value, two-year fixed rate reduced by 0.25 percentage points to 1.14 per cent with a £999 fee or by 0.05 percentage points to 1.44 per cent with no fee.
• At 60 per cent LTV, three and five-year fixed rates reduced by 0.05 percentage points to 1.34 per cent with a £999 fee or 1.64 per cent with no fee.
• At 60 per cent LTV, ten-year fixed rates reduced by 0.20 percentage points to 2.14 per cent with a £999 fee or 2.24 per cent with no fee.
• Many other reductions on deals up to 90 per cent LTV for various fixed-rate terms

Cuts in its remortgage range with £1,499 fee include:

• Rates for the two-year fixed products up to 60 per cent LTV are reduced by 0.05 percentage points to 1.14 per cent.
• Rates for the five-year fixed rate products up to 60 per cent LTV are reduced by 0.05 percentage points to 1.34 per cent.

Nationwide is also reducing rates on its two-year trackers, including:

• 60 per cent LTV reduced by 0.15 per cent to 1.54 per cent with no fee.
• 80 per cent LTV reduced by 0.25 per cent to 1.59 per cent with a £999 fee.
• 85 per cent LTV reduced by 0.05 per cent to 1.79 per cent with a £999 fee.

The lender is making reductions in its later life retirement capital and interest and retirement interest-only range:

• Two-year fixed rate reduced by 0.4 percentage points to 2.59 per cent.
• Three-year fixed rate reduced by 0.4 percentage points to 2.79 per cent.
• Ten-year fixed rate reduced by 0.4 percentage points to 3.39 per cent.

Nationwide director of mortgages Henry Jordan says: “While the housing market slowly begins to open up again, the mortgage market continues to remain as competitive as ever. 

“Although many borrowers continue to like the security of fixing their mortgage repayments, we know there are some who want to take advantage of these historic low interest rates by going for a tracker mortgage.”