The society has also expanded its mortgage offering with the launch of a 3-year fixed-rate mortgage range at various LTV options, from 60% through to 95%, or 85% for remortgage.
Rates on the range start from 0.94% and match the equivalent rates on the society’s 2-year fixed mortgages.
The products come with both no fee and £999 fee options and will be available to first-time buyers and those remortgaging, as well as new customers and existing members looking to move home.
Nationwide has also revealed that it will be reducing rates on 21 July on other selected mortgages across its 2 and 5-year fixed-rate range by up to 0.40 percentage points.
This includes the society’s 90% LTV 2-year fix cut by 0.35% to 2.44%, with a £999 fee.
For new customers moving homes, the lender has reduced a 90% LTV 2-year fix by 0.40% to 2.59%, with no product fee and for those remortgaging, it has cut the 85% LTV 2-year fix by 0.30% to 1.99%, with a £999 fee.
For the society’s existing members moving home, Nationwide has reduced rates by up to 0.30% on selected 2 and 5-year products up to 95% LTV.
Nationwide has also reduced selected further advance, family deposit mortgage and switcher rates between 60% and 95% LTV by up to 0.80%.
Henry Jordan, director of mortgages at Nationwide, said: “As the country’s biggest building society, it’s important that we continue to play a leading role in supporting people not only into a home of their own, but as they move on to their next home.
“That is why we are launching the sub-1% 5-year fixed rate mortgage for both new customers and existing members either moving home or switching product – something we feel will give them greater certainty over their payments for a longer period.
“The significant reductions we’re making across a wide range of our mortgages demonstrates our ongoing support for all types of borrowers and, by expanding our range with the launch of new 3-year products, we are also giving them even more choice when they come to make that decision on how long to fix that mortgage rate.”
Mark Harris, chief executive of SPF Private Clients, added: “Just when it looked as though mortgage rates couldn’t possibly go any lower, they have.
“While there has been a flurry of sub-1% 2-year fixes in recent weeks, this is the first 5-year fix pegged at such a low rate.
“Borrowers must have a 40% deposit or similar level of equity, and pay a £1,499 fee to access the deal.
“With Nationwide also offering a 2-year fix at 0.91%, the building society has done the double with the cheapest 2- and 5-year fixes on the market.
“As lenders are cash-rich and eager for business, we wouldn’t bet against others following suit and offering similarly cheap products in coming weeks.”
