The building society has lowered products by up to 0.25% for existing Nationwide mortgage who are looking to refinance.

The loyalty mortgage range now includes a two-year tracker at 3.14%, available up to 90% loan-to-value. This comes with a £999 fee, although a fee-free option is available at a rate of 3.54%.

The reductions have been made as part of the lender’s promise to beat its high street rivals. Nationwide looks at the rates offered by the top six high street lenders to make sure it offers its customers the best deal.

Research released by Moneyfacts last week suggested that building societies were undercutting banks on rate. It found the average five-year fixed rate mortgage at building societies was available at 3.51%. This compares to an average rate of 3.21% at UK banks – a 0.3% difference.

The Nationwide deals are also open to new customers, but rates are 0.1% higher.

Nationwide is the latest lender to cut its rates and follows Virgin Money, which cut prices in its remortgage range yesterday.