Nationwide will reduce rates by up to 0.25% on its first-time buyer and home mover ranges, with the lowest rate now under 4%.

The rate, effective tomorrow, is available on both the two-year and five-year fixed rate products.

For existing and new customers moving home, the lender has lowered selected two-, three-, and five-year fixed rate products up to 95% loan-to-value (LTV).

These include the two-year fixed rate at 60% LTV with a £1,499 fee, which has been cut from 4.14% to 3.89% while the five-year fixed rate at 60% LTV with a fee of £1,499 has been lowered by 0.13% to 3.89%.

It has also cut the two-year fixed rate at 60% LTV with a £999 fee by 0.25% to 3.94% and the five-year fixed rate at 60% LTV with a £999 fee by 0.13% to 3.94%.

Meanwhile, Nationwide has made reductions of 0.24% across two- and three-year fixed rate first-time buyer products up to 95% LTV.

These include the two-year fixed rate at 60% LTV with a £1,499 fee which has been cut from 4.29% to 4.09% and the two-year fixed rate at 60% LTV with a £999 fee, which has been lowered by 0.20% to 4.14%.

Commenting on the cuts, Trinity Financial product and communications director Aaron Strutt says: “There have been a lot of rate changes and price cuts over the last week as the lenders try harder to attract borrowers. Nationwide has clearly seen NatWest, Halifax and Yorkshire BS lower rates and acted to ensure its mortgages stay competitively priced.”

“Nationwide’s lowest rates are available for mortgages between £300k and £5 million. It is good to see the society offering two, three and five year fixes below 4%.”

Earlier today, Halifax announced it has made rate reductions on homebuyer and remortgage products, including a sub-4% two-year fixed rate.

The lender’s two-year fixed rate, available up to 60% LTV with a product fee of £999 now has a rate of 3.94%.