Nationwide's fixed and tracker mortgage rates sliced

In a bid to provide more value for new borrowers, Nationwide Building Society has announced that it is cutting the price on 44 fixed and tracker rate mortgage products.

The move, which is effective immediately, will affect a variety of products such as its two-year fixed-rate mortgage for those buying a home, which will now be available at a rate of 3.98 per cent on up to 60 per cent loan-to-value (LTV).

While new customers will be able to borrow up to 85 per cent LTV, existing borrowers who are downsizing or upgrading can access loans of up to 95 per cent LTV.

Similar products for those buying a home include a three-year fixed-rate mortgage offering up to 60 per cent LTV, which is available from 4.58 per cent and a two-year tracker that is available from 3.8 per cent at 60 per cent LTV.

Loans for those remortgaging have also benefitted from the rate cut and they include a two-year fixed-rate product available from 3.98 per cent at up to 60 per cent LTV. This product will offer remortgage customers up to 85 per cent LTV.

There is also a three-year fixed-rate mortgage available from 4.78 per cent that will allow remortgage customers to borrow up to 85 per cent LTV and a two-year tracker available from 3.8 per cent that will also allow up to 80 per cent LTV for remortgage customers.

"We have a superb range of products for existing customers coming to the end of a Nationwide deal including two and three-year fixed rates which are currently among the best in the market compared to remortgage deals offered by other lenders," said Nationwide mortgage director Andy McQueen.

"For these borrowers, we also offer a choice of capped variable rate mortgages from as little as 2.99 per cent.

"These mortgages are ideal for borrowers who are uncertain about how interest rates will move in the future as they provide assurance that the mortgage rate will not rise above a certain level."

A personal finance expert has welcomed the rate cuts by Nationwide, saying that it is a positive development that "raises the stakes" in the mortgage market.

However, moneysupermarket.com's head of mortgages Louise Cuming added that despite the products' competitive pricing, they still need a few tweaks in order to cater for those with small deposits.

Noting that the lender requires a deposit of at least 40 per cent for those who want to qualify for its lowest rates, Ms Cuming said that "providers must look to offer affordable deals for all borrowers including those with smaller deposits if the mortgage market is to make a full recovery".

The Bank of England recently published data showing there were 47,584 loans approved for house purchases in June, up from 44,169 in May.