Nationwide has trimmed prices on first-time buyer and new and existing customer rates to start from 3.94% and 3.81% respectively.

First-time buyer products will see rates decrease by as much as 0.20% across two, three and five-year fixed rate products up to 90% loan-to-value (LTV).

This includes the lender’s two-year fixed rate at 60% LTV with a fee of £1,499 which now has a rate of 3.94% after being cut by 0.05%.

New and existing customers moving home will see reductions of up to 0.20% across two, three and five-year fixed rate products up to 90% LTV.

This includes its two-year fixed rate at 60% LTV with a £1,499 fee now priced at 3.81% after being lowered by 0.09%.

Remortgage products have also seen reductions of up to 0.10% across two-, three- and five-year fixed rates up to 85% LTV with rates now starting from 3.89%.

This includes a two-year fixed rate at 60% LTV with a fee of £1,499, which is now priced at 3.89% after being reduced by 0.03%.

Nationwide senior manager of mortgages Carlo Pileggi says: “These latest reductions will be welcome news for borrowers looking to buy their first home or move onto their next.”

“We’re proud to support all areas of the market, whether it’s first-time buyers – through our Helping Hand boost, which enables eligible first-time buyers to borrow up to six times their income – home movers or those looking for a new deal. With our reduced rates starting from 3.81%, we aim to be front of mind.”

Yesterday, Barclays announced further rate cuts, reducing its residential remortgage only five-year fixed at 60% LTV with a fee of £999 has decreased from 4.03% to 3.93%.

Trinity Financial product and communications director Aaron Strutt says: “Nationwide is the latest big lender to lower its rates and undercut its competitors. Its new rates are cheap enough to top the best buy tables especially if you have a large deposit.”

“Halifax has just launched a 3.84% two-year fix targeting borrowers buying a home and Barclays has a 3.92% five-year fix for those needing to remortgage. If you don’t want to lock in for the standard two or five years, MPowered Mortgages has a three-year fix at 3.88% offering decent value for money.”

“Nationwide has acted quickly to lower rates and undercut Halifax by launching a 3.81% two-year fix and a 3.92% five-year fix for mortgages between £300,000 and £5 million. These are property purchase products.”

“Five of the big six biggest lenders have lowered their rates and no doubt other lenders will follow their lead.”

“If you are offered a sub-4% rate at the moment you are doing pretty well. You just need to decide how long you want to fix in for and that really comes down to your attitude to rise. Lots of people are still taking two-year fixes as they think rates will come down more.”

“With £147bn worth of mortgages coming up for renewal between now and December this latest round of rates cuts with come as welcome news for homeowners needing to remortgage.”