The reduction takes its two-year fixed rate to 1.34% – the mutual’s lowest ever fixed rate, and is available to borrowers with a 40% deposit. It comes with a £999 fee, or there is a fee-free option at 1.74%.

The building society’s three-year fixed rate mortgages start at 1.64% with a £999 fee and 1.94% with no fee.

In addition, both two-year and five-year fixed rates in the shared equity range, covering all schemes including the Help to Buy Equity Loan scheme, have been reduced, and now start from 1.54%.

Henry Jordan, Nationwide’s head of mortgages, added: “We also continue to offer additional benefits for both new and existing customers, such as a £500 cashback for first time buyers to help with moving costs, free standard valuations for all mortgage customers and the flexibility of no Early Redemption Charges for all tracker customers.”