The UK’s largest mutual, Nationwide, has announced it is reducing the cost of its fixed rate mortgages.

The building society has cut rates across the full range of its two-year fixed products. The 60% loan-to-value mortgage for borrowers with at least 40% upfront now starts at 1.29% with a £999 fee or 1.69% with no fee.

For those with a more modest 5% deposit, predominantly first-time buyers, rates are 3.69% with a £999 fee and 4.09% with no fee.

Three-year fixed rates include a 1.59% deal with a £999 fee up to 60% LTV, or 1.89% with no fee. For those borrowing 95% LTV the rate is 4.09% with a £999 fee and 4.39% with no fee.

Borrowers looking to lock in for longer can access five-year fixed rate mortgages starting from 1.89% at 60% LTV and 4.49% up to 95% (with a £999 fee).
 
In addition, the rate for the 75% LTV five-year tracker product with a £999 fee is reduced to 2.14%. All Nationwide tracker mortgage products currently have no Early Redemption Charges (ERCs).