Nationwide has cut its mortgage rates by up to 0.20 percentage points for first-time buyers and home movers with modest deposits of between 5% and 20% of the property’s value.

The new rates include:

• A two-year fixed rate at 90% LTV at 2.24%, with a £999 fee
• A two-year fixed rate at 95% LTV at 3.39%, with no product fee
• A five-year fixed rate at 95% LTV at 3.39%, with a £999 fee.

Nationwide’s first-time buyer mortgages also come with £500 cashback, while those looking to remortgage to the Society can choose between £500 cashback or free standard legal fees.

Shared equity mortgages

The lender is also introducing new rates for home movers and first-time buyers looking to purchase through shared equity.

The society is reducing rates by up to 0.34% on selected two and five-year fixed rates between 60% and 80% LTV. Rates start from 1.20% for two-year fixed mortgages and 1.30% for the five-year fixed products.

Henry Jordan, Nationwide’s director of mortgages, said: “Nationwide remains as committed as ever to helping people move into their first home or onto their next. We are making these rate cuts to ensure we continue to be one of the most competitive lenders around at a time when demand remains high.”