Nationwide is increasing the heat in the mortgage price war by slashing the rate on its fixed-rate mortgages by 0.9 per cent.
The move is expected to trigger a more competitive pricing approach from other mutuals that have been losing market share to high street banks.
It is also cutting the rate on its discount mortgages by 0.25 per cent, introducing a 0.1 per cent loyalty discount for existing customers looking to move home and launching a capped rate mortgage.
The capped rate mortgage is at 5.69 per cent (5.9 per cent apr) for two years up to 90 per cent loan to value. Customers that borrow 95 per cent loan to value will be offered 5.89 per cent (6.3 per cent apr).
It has no redemption penalties and IFAs will receive a procuration fee of £150 on completion.