SWINDON-based Nationwide has slashed its mortgage deals for first time buyers to give them a helping hand of getting on the property ladder.

The building society, which has its HQ located in Pipers Way, has cut its rates on selected two and five year fixed and two year tracker rate mortgages by up to 0.1 per cent.

The good news means that first time buyers, who have a 10 per cent deposit, rates have been reduced to 2.19 per cent with a £999 fee and 2.59 per cent with no fee - the lowest rates in this range ever offered by Nationwide.

The five year fixed rate product with a 40 per cent deposit now starts at 1.84 per cent with a £999 fee and 2.04 per cent with no fee which is also a historic low for the company.

Henry Jordan, Nationwide’s director of mortgages, said: “We are making further reductions to selected rates across our fixed and tracker rate ranges, with a number of Nationwide mortgage rates reaching historic lows.

“As well as offering a wide range of competitive mortgage rates, Nationwide also offers additional benefits to first time buyers, home movers and those re-mortgaging to the society.”

Nationwide made the announcement yesterday after a number of other companies said they would be cutting their mortgage rates last week.

Yorkshire Building Society started the trend when they launched a 0.89 per cent rate - the lowest on record.

To match their competitors, Nationwide also reduced their two year tracker rates, with those at up to 85 per cent loan to value (LTV) starting at 1.54 per cent with a £999 fee and 1.94 per cent with no fee.

All Nationwide tracker mortgage products currently have no Early Redemption Charges (ERCs) meaning people can pay off their borrowing earlier with the peace of mind that they won’t be charged.

The society is also offering a range of additional benefits including fee-free mortgage valuations, first time buyers receiving a £500 cashback to help with the cost of moving and remortgage customers able to have the choice between free standard legal work and £250 cashback..