Nationwide Building Society will be introducing a 0.99% mortgage for homeowners looking to remortgage.
The 2-year fixed rate, available at 60% loan-to-value (LTV) with a £1,499 fee, is being reduced by 0.05% to 0.99%.
Nationwide is also reducing rates on 2 June on other selected mortgages across its range, by up to 0.20 percentage points.
Notable reductions for first-time buyers include the 85% LTV 2-year fix cut by 0.20% to 2.79%, and the 90% LTV 5-year fix cut by 0.05% to 3.39%.
The former deal has no fees, while the latter has a £999 fee.
For new customers, the lender’s 85% LTV 2-year fix has been cut by 0.07% to 2.32% and the 90% LTV 5-year fix has been cut by 0.05% to 3.34% – both deals include a £999 fee.
For remortgages, Nationwide has made reductions of up to 0.10% across selected 2 and 5-year fixed rate products up to 85% LTV.
Nationwide’s first-time buyer mortgages also come with £500 cashback, while those looking to remortgage to the building society can choose between £500 cashback or free standard legal fees.
Henry Jordan, director of mortgages at Nationwide, said: “As the UK’s largest building society, helping people into their first home or to move to their next is a core part of what we do and that commitment to those borrowers is evidenced by these latest rate cuts.
“We also want to ensure that Nationwide is the first port of call for those looking for a new mortgage deal, which is why we are pleased to be able to launch a sub-1% rate for those looking to remortgage.
“The launch of our new 0.99% rate comes soon after we launched our lowest ever further advance rate for those looking to make their homes greener.
“With these, alongside our other rate reductions, we are ensuring that Nationwide’s mortgage range continues to be one of the best around in what remains an extremely competitive market.”