Nationwide has reduced its rates by up to 0.26% on selected two-, three- and five-year fixed rate products between 80% and 95% loan-to-value (LTV), effective tomorrow.

With these changes, Nationwide has introduced sub-5% rates for first-time buyers as well as existing and new customers moving home with just a 5% deposit.

For new customers moving home, the lender has made reductions of up to 0.21% across two-, three- and five-year fixed rate products between 80% and 95% LTV. These include the two-year fixed rate at 90% LTV with no fee, which has been reduced by 0.21% to 4.99% while the five-year fixed rate 90% LTV with a fee of £999 has been lowered by 0.10% to 4.57%.

For existing customers moving home, rates have gone down by as much as 0.21% across two, three and five-year fixed rate products between 80% and 95% LTV.

These include the two-year fixed rate at 90% LTV with no fee has been cut by 0.21% to 4.99%.

For first-time buyers, Nationwide has lowered rates by up to 0.26% across two, three and five-year fixed rate products between 80% and 95% LTV.

The two-year fixed rate at 95% LTV with no fee is now 5.30% after it was cut by 0.26% while the five-year fixed rate at 95% LTV with a fee of £999 has been cut by 0.25% to 5.04%.

Remortgage rates have also been trimmed by as much as 0.12% across two, three and five-year fixed rate products between 80% and 90% LTV.

The two-year fixed rate at 85% LTV with no fee is now 5.15%, which has been cut by 0.12%, while the two-year fixed rate at 85% LTV with a £999 fee is now 4.84%, down by 0.05%.

The lender has also added a range of new £1,499 fee products at both 90% and 95% LTV, which includes a five-year fixed rate at 95% LTV for first-time buyers at 4.99%

Nationwide senior manager of mortgages Carlo Pileggi says: “Our latest rate cuts will be welcome news to borrowers with smaller deposits, particularly first-time buyers, and we’re pleased to once again be offering rates below five per cent for those with a 5% deposit.”

“The introduction of our new £1,499 fee products will also widen the choice of products available for those who are considering Nationwide for their mortgage needs.”