The deal, which is available for remortgagers, is for customers with a loan-to-value (LTV) of 60% and it comes with a £1,499 fee.

The new rate is available as a result of a number of price cuts the building society has made which also includes reductions of up to 0.20% across selected two and five-year deals for first-time buyers borrowing at 90% LTV.

Henry Jordan, Nationwide’s director of mortgages, said: “We want to ensure that Nationwide is the first port of call for those looking for a new mortgage deal, which is why we are pleased to be able to launch a sub-1% rate for those looking to remortgage.

“The launch of our new 0.99% rate comes soon after we launched our lowest ever further advance rate for those looking to make their homes greener.

“With these, alongside our other rate reductions, we are ensuring that Nationwide’s mortgage range continues to be one of the best around in what remains an extremely competitive market.”

Rates rising

It comes after Moneyfacts released statistics which showed fixed mortgage rates were on the rise with two-year deals increasing, on average, by 0.56% since June last year and by 0.06% since January.

Rachel Springall, finance expert at Moneyfacts, said despite the rises, the rates were still attractive enough to entice borrowers to switch. And she thought deals with a 0.99% rate would grab the spotlight and catch these borrowers’ eyes.

“The volatility of interest rates is a response to the pandemic, as the mortgage market contracted whilst lenders focused on their existing customers and less so on new business,”Springall said.

“However, the situation appears to be starting to change for the better in recent weeks as both rate competition and product volumes are starting to return.

She added:  “Mortgage borrowing remains robust with the Bank of England highlighting the strongest figures seen since records began and this momentum may continue as normality returns and lenders launch new deals to entice new customers.”