The lender will also reduce the rates charged on other mortgages by 0.4%, in the fourth set of rate reductions in less than two months. The rate cutting across all LTV tiers includes a two-year fixed rate offered from 4.49% or 0.10% less for existing clients.

The three-year fixed rate will be reduced by 0.60%, and will be offered from 4.69% and the five-year fixed rate will be offered from 4.99%, or at 0.10% less for existing customers.

Other fixed and tracker rates will be reduced by up to 0.40%.

Tracie Pearce, Nationwide’s head of mortgages, said: “We’ve cut our rates a number of times over the last few weeks and not just for those with a large deposit. This time, we will continue to make reductions across the board, but our largest cuts are on loans with an LTV of 90%.

“It’s a tangible demonstration of how we are utilising the Funding for Lending Scheme to reduce rates for customers at both ends of the LTV spectrum.

“We hope it gives first-time buyers and other borrowers the boost they need to get the mortgage and home that they are looking for.

“The message is very clear – Nationwide is open for business.”