The new product, available at up to 60% loan-to-value (LTV) will be available from Wednesday 4 March and has been announced alongside a raft of other cuts at the lender.
Deals on the building society’s three and five-year fixed rates are now at their lowest ever, starting at 1.99% for new customers and five-year fixed rates starting at 2.34%.
Nationwide said borrowers with a 5% deposit are eligible for reductions on its Save to Buy rates, with the two-year rate with a £999 fee cut by 0.45% to 3.99%.
Its Flexclusive four-year fixed rate at up to 60% LTV has been reduced to 2.14% and the lender has introduced a rate discount of 0.10% for existing mortgage borrowers across all new loan deals.
Richard Napier, Nationwide’s director of mortgages and savings, said: “This new range of fixed rate mortgage deals ensures Nationwide remains competitive, including for those with smaller deposits. They are designed to appeal to both first-time buyers and those looking to remortgage, offering certainty of mortgage payments while interest rates remain at a historic low.
“We are also responding to customer demand for higher LTV products, such as our Save to Buy mortgage deals for customers with a 5% deposit, with a two-year fixed rate now under 4% and an offer of up to £1,000 cashback.