Nationwide is cutting its lowest two-year fixed rate to 0.99% as well as making reducing a number of other deals by up to 20 basis points.

The building society’s new 0.99% product has come down by 5 basis points from 1.04% and is for remortgage only.

The deal is available up to 60% LTV with a £1,499 fee.

Nationwide is also reducing rates on the following first-time buyer deals, which come with £500 cashback:

• Two-year fixed rate at 85% LTV reduced by 20 basis points to 2.79%, with no product fee
• Five-year fixed rate at 60% LTV reduced by 20 basis points to 1.54%, with no product fee
• Five-year fixed rate at 90% LTV reduced by 5 basis points to 3.39%, with a £999 fee
• Two-year fixed rate at 90% LTV reduced by 5 basis points to 3.04%, with a £999 fee

The lender is cutting rates on the following deals for new customers moving home: 

• Five-year fixed rate at 60% LTV reduced by 20 basis points to 1.49%, with no product fee
• Two-year fixed rate at 85% LTV reduced by 7 basis points to 2.32%, with a £999 fee
• Two-year fixed rate at 90% LTV reduced by 5 basis points to 2.94%, with £999 product fee
• Five-year fixed rate at 90% LTV reduced by 5 basis points to 3.34%, with £999 product fee

Nationwide is also reducing the following remortgage rates:

• Two-year fixed rate at 75% LTV reduced by 10 basis points to 1.34% with a £999 fee
• Five-year fixed rate at 60% LTV reduced by 10 basis points to 1.54% with no product fee
• Five-year fixed rate at 60% LTV reduced by 5 basis points to 1.24% with a £999 fee
• Remortgage borrowers can choose between £500 cashback or free standard legal fees.

For existing members moving home, Nationwide is reducing rates by up to 15 basis points on selected two and five-year products up to 95% LTV.

Nationwide is also trimming selected further advance, family deposit mortgage and switcher rates by up to 5 basis points.

Nationwide director of mortgages Henry Jordan says: “As the UK’s largest building society, helping people into their first home or to move to their next is a core part of what we do and that commitment to those borrowers is evidenced by these latest rate cuts. 

“We also 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.”