This is the first time the building society has offered a fixed rate lower than 2 per cent.
The deal is only available to existing customers. A two-year fixed product up to 60 per cent LTV is available at 2.04 per cent with a £900 product fee for new customers.
Moreover, Nationwide has reduced rates across all two-year fixed products available up to 70 per cent loan-to-value by ten basis points. There is a £900 product fee, although first-time buyers will be charged a lower product fee of £400.
There is also a new two-year fix up to 60 per cent with no product fee, at 2.44 per cent – this also comes with a lower rate of 2.34 per cent for existing Nationwide customers. A non-refundable booking fee of £99 is attached to both loans.
Rates are also being cut across all two and three-year tracker rates by up to 15 basis points.
Nationwide head of group mortgages Tracie Pearce says: “These reductions demonstrate our commitment to offering extremely competitive rates, both to new and existing customers.”