The UK’s largest building society, which has so far not signd up to the government’s Help to Buy 2 scheme encouraging 95% loan-to-value (LTV), has cut the cost of all of its 90% LTV mortgages by 0.3%.

It has also reduced the interest rates charged on its 80% and 85% mortgage deals by 0.1%.

The new mortgage product range will include a 3.99% two-year fixed rate up to 90% LTV with a £900 product fee.

First-time buyers will receive a £500 product fee discount while existing borrowers will be given access to a lower rate of 3.89%.

Tracie Pearce, head of group mortgages at Nationwide, said:

“These reductions at 80-90% LTV demonstrate how Nationwide is committed to supporting both first time buyers and home movers, enabling those with smaller deposits to access very competitive rates.

“In particular, the reduction of two year fixed rates available up to 90% LTV by 0.30% means that we are offering rates to both new and existing customers below 4%.”