Nationwide will cut fixed mortgage rates by up to 16bps for new and existing customers, while TSB is making cuts of up to 10bps.

The cuts will apply across two, three and five-year fixed rate products. This now means Nationwide’s lowest rate now stands at 3.54%, for a two-year fix to 60% LTV for a new member home move, with a £1,499 fee.

The changes will take place from 13 February.

The new rates include reductions of up to 0.16% across two, three and five-year fixed rate products up to 95% LTV for first-time buyers including: • Three-year fixed rate at 90% LTV with a £999 fee is 4.40% (reduced by 16bps) • Two-year fixed rate at 90% LTV with a £999 fee is 4.10% (reduced by 14bps) • Two-year fixed rate at 60% LTV with a £1,499 fee2 is 3.67% (reduced by 15bps)

Existing and new customers moving home will see reductions of up to 15bps across two, three and five-year fixed rate products up to 95% LTV, including: • Two-year fixed rate at 60% LTV with a £1,499 fee is 3.54% (reduced by 15bps) • Five-year fixed rate at 85% LTV with a £1,499 fee is 3.94% (reduced by 15bps)

For remortgaging customers, Nationwide is cutting rates by up to 15bps across two, three and five-year fixed rate products up to 90% LTV.

These include a three-year fixed rate at 60% LTV with a £999 fee at 3.80% (reduced by 15bps) and a five-year fixed rate at 80% LTV with a £999 fee at 4.04% (reduced by 10bps).

Nationwide head of mortgage products Carlo Pileggi said: “We review our mortgage rates on an ongoing basis to ensure they are sustainable and competitive for customers. These latest rate cuts are great news for first time buyers and home movers, who will see the biggest benefit.”

Trinity Financial director Aaron Strutt said: “It is good to see one of the bigger lenders lowering rates again because there have been quite a few price hikes over the last few weeks. Nationwide’s cheapest deal is only slightly more expensive than Santander’s 3.51% two-year fix. Nationwide’s three-year fix also looks like a good option at 3.69%.

“Nationwide is also improving rates for borrowers with smaller deposits and given that first-time buyers now account for 48.3% of purchases in London and 34.3% of homes sold across Great Britain it is not a surprise. The fight is really on to start issuing even more first-time buyer mortgages.”

Also on 13 February TSB is making selected rate cuts to its residential range.

These include a 10bps cut to its two-year fixed house purchase mortgage and a 5bps cut to its five-year fixed house purchase mortgage to 85% LTV.