The largest rate reductions will be applied to mortgages targeted to first-time buyers, such as the fee-free three-year fix product at 60 per cent loan to value (LTV), which has been cut from 6.64 per cent to 6.34 per cent.
At 95 per cent LTV, the corresponding option has also been cut by 0.3 per cent to 6.84 per cent.
There is also a five-year fix at 60 per cent LTV with a £999 fee which has gone down from 5.74 per cent to 5.64 per cent, and three-year fix at 75 per cent LTV with the same fee, which has been reduced by 0.15 per cent to 6.24 per cent.
For new borrowers moving home, reductions of up to 0.45 per cent have been made. This includes its five-year fix at 60 per cent LTV which has been lowered from 5.69 per cent to 5.64 per cent, and the three-year fix at 75 per cent LTV which is now 5.99 per cent, down from 6.09 per cent.
For new home movers, the two-year fix at 60 per cent LTV has gone down from 6.14 per cent to 6.09 per cent.
All products are subject to a £999 fee.
Remortgage deals have been reduced by up to 0.35 per cent in rate, while selected options for existing borrowers who are moving home will fall by up to 0.3 per cent.
Meanwhile, the rates on the mutual’s two-year tracker mortgages will rise by 0.25 per cent in line with the base rate increase.
Henry Jordan, director of home at Nationwide Building Society, said: “These latest changes build on the reductions we made last week for existing customers.
“With swap rates having fallen from their early July peak and stabilised somewhat, we are now able to reduce rates for new customers.”
MHBS cuts fixed rates
Specialist lender Market Harborough Building Society (MHBS) has reduced its fixed rate deals by up to 0.70 per cent.
These apply to its expat, holiday let, multi-generation and larger loan mortgages.
For example, the lender has cut its three-year fixed rates, while two-year fixes are 0.5 per cent lower and five-year fixes have been cut by 0.2 per cent.
Its rates begin from 5.69 per cent for a residential three-year discounted mortgage and its three-year fixed residential product up to 75 per cent LTV is priced at 6.09 per cent. The latter has a £299 application fee.
Joint borrower sole proprietor, second home and simple annexe cases are included in this pricing as standard.
Chris Thompson, national account manager at MHBS, said: “We are delighted to pass on these fixed rate reductions to borrowers, as we reflect current market conditions.
“We’re committed to finding ways to support intermediaries and their clients with more complex needs during this challenging period by offering a range of competitive products for those looking to borrow between £200,000 and £3.5m.”
