Nationwide will plans to chop the cost of the majority of its fixed rate mortgages by up to 0.20% on Wednesday, in addition to passing on the full 0.25% Base Rate reduction to its existing tracker mortgage, Base Mortgage Rate (BMR) and Standard Mortgage Rate (SMR) customers.

The mutual is making rate reductions to a large selection of its two, three, five and 10-year fixed rate products.

• The two-year fixed rate products start at 1.49% with a £999 fee and 1.89% with no fee
• The three-year fixed rate products at 1.79% with a £999 fee and 2.09% with no fee
• The five-year fixed rate range at 2.14% with a £999 fee and 2.34% with no fee.

Long-term security

For those looking for a decade of payment security, the 10-year fixed rate products are now at the lowest ever rate set by the Society, from 2.79% with a £999 fee and 2.89% with no fee for the 60% LTV mortgage deal.

All standard mortgage valuations are fee-free, while first-time buyers receive a £500 cashback to help with the cost of moving.

Henry Jordan, Nationwide’s head of mortgages, said: “Following the cut in the Bank of England Base Rate, we have already passed on the benefit in full to those customers on our BMR and SMR rates. Now we are reducing fixed rate deals for those looking for competitive rates and payment security over a wide range of terms and size of deposit.”