The reductions are being made on a range of the mutual’s two, three and five-year fixed rate deals, with rates for those mortgage customers with a 5% deposit now starting at 3.99% for a two-year fixed rate mortgage with a £999 fee.

The rates for those with 10% upfront start at 2.49%, while those with a 15% deposit start at 1.94%, both with a £999 fee.

Buyers opting for a five-year fixed rate mortgage deal will see rates chopped to 2.99% for the 85% LTV product, 3.29% for the 90% LTV product, and 4.79% LTV for the 95% product, all with a £999 fee.

£500 cashback and no valuation fees

The Society has also made all mortgage valuations fee-free for first-time buyers and home movers, while first-time buyers are able to access a £500 cashback to help with the cost of moving.

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Henry Jordan, Nationwide’s head of mortgages, said: “We are reducing rates for those with smaller deposits who are looking for competitive rates and payment security over a range of terms, with a focus on first-time buyers who will continue to qualify for a £500 cashback.

“All mortgage valuations are now fee-free for all customers and Nationwide main current account customers can access a cashback of £250, both irrespective of which product they choose, further helping customers to secure a home of their own.”