The Nationwide Building Society has cut a number of rates by up to 0.40 percentage points across its range of 5% deposit fixed rate mortgages.
Rates for the two-year 95% loan to value (LTV) product are cut by 0.35 percentage points to 3.89% with a £999 fee and 4.29% with no fee.
Three-year 95% LTV fixed rates are reduced by 0.40 percentage points to 4.39% with a £999 fee and 4.69% with no fee, while five-year fixed rates are reduced by 0.30 percentage points to 4.69% with a £999 fee and 4.89% with no fee respectively.
Henry Jordan, Nationwide’s head of mortgages, said: “As part of Nationwide’s range of measures to help first time buyers on to the housing ladder, we are reducing rates for those with smaller deposits looking for competitive mortgage deals and payment security over a range of terms.
“First time buyers will also continue to qualify for a £500 cashback, irrespective of which product they choose. This is in addition to fee-free valuations now available on all mortgage products, which will save the average Nationwide mortgage customer around £200.
“Nationwide Flex main current account holders applying for a mortgage will also be eligible for a £250 cashback on any product across the mortgage range.”
Customers can select any mortgage product and benefit from fee-free valuations, providing them with the option to obtain a mortgage offer with no upfront fees.
Those customers opting for a more detailed Nationwide Homebuyers Report will now pay a reduced top-up fee, depending on the overall value of the property on a sliding scale, starting from £150.
Existing mortgage customers continue to benefit from a 0.10 percentage point discount on new customer rates. There are also rate changes for existing mortgage customers looking to switch deal as part of Nationwide’s Loyalty Rate Mortgages initiative, which compares the Society’s mortgage rates for existing customers to those of its top six high street competitors. This includes switcher rates at up to 60% LTV reduced to 1.44% with a £999 fee and 1.79% with no fee.