As the property market begins its traditional Easter rush, Britain’s biggest building society Nationwide has made cuts to mortgage rates, with the deals including a new best-buy for home movers. 

Nationwide has reduced its rates by up to 0.25 percentage points, including a deal for home movers with 40 per cent deposit which is now offered at 3.89 per cent. 

The mortgage, available on either a two or five-year fixed rate, is the cheapest rate on the market currently, though it comes with a large fee at £1,499. 

On this mortgage, someone buying a £250,000 home on a 25-year term would repay £783 per month.  

A lower-fee option is available at 3.94 per cent plus a £999 arrangement charge. 

After the 3.89 per cent rate, the next-cheapest rate for the same circumstances is 3.91 per cent with Yorkshire Building Society, which has a £999 fee. 

Rate battle: Many major lenders have reduced their mortgage rates in recent weeks

Last week, multiple lenders slashed their mortgage rates including Yorkshire BS, Virgin Money, HSBC and Santander. 

This is in response to forecasts that the Bank of England will reduce its base rate more times than previously expected this year, though experts have warned that mortgage rates do not have much further to fall. 

For the first time in several years, there are also rates on two-year mortgages which are cheaper than their five-year equivalents. 

Today, the average five-year fixed rate is 5.12 per cent and the average two-year fixed rate is 5.23 per cent. 

Nationwide has also reduced its two-year fixed rate for those with a 15 per cent deposit to 4.4 per cent. 

This deal comes with a £999 fee and is not a best buy, with similar deals available with rates as low as 4.32 per cent, or 4.17 per cent if they are willing to accept a £1,495 fee. 

The rates are open to both existing and new customers moving home, and will be available from 23 April. 

For first-time buyers, Nationwide’s rates now start at 4.09 per cent. 

Those with a 40 per cent deposit can get a 4.09 per cent rate on a two-year fix, with a £1,499 fee, or a 4.14 per cent rate with a £999 fee. 

For first-time buyers with a 10 per cent deposit, Nationwide is offering a two-year fixed rate of 4.72 per cent with a £999 fee.

The cheapest 10 per cent deposit deal on the market is 4.43 per cent with Yorkshire Building Society on a two-year fix, though this comes with a £1,495 fee. The same lender offers a 4.58 per cent rate with a £245 fee.  

Henry Jordan, of Nationwide, said: ‘We know that rate is an important factor for borrowers looking to buy their first home or move onto their next. 

‘These latest cuts should put Nationwide firmly on the radar for first-time buyers and home movers as we continue to be one of the most competitively priced lenders in the market.’

Riz Malik, director at Essex-based financial adviser R3 Wealth, added: ‘Nationwide waited until after the Easter break to take the axe to their rates with new borrowers and home movers alike benefiting from the lowest fixed deals. 

‘Given current market movements, the next seven days may see even more cuts as the expectation for future rate cuts increases. If you have an application or an offer and the deal has not completed yet, speak to your broker.’