Nationwide BS has announced that it has cut selected 95% LTV rates by up to 0.50% in addition to increasing the maximum loan size at 95% LTV from £350,000 to £500,000.

According to the lender, rates now start at 2.99% for a two-year tracker with a £999 fee and 3.39% with no fee, a reduction of 0.50%. Three-year fixed products start at 3.59% with a £999 fee and 3.89% with no fee, while five-year fixed have been cut to 3.74% with a £999 fee and 3.94% with no fee.

The society revealed that the maximum LTV for further borrowing as well as those looking to remortgage with additional borrowing will increase to 90% LTV, apart from debt consolidation or repaying a non-Help to Buy second charge.

Henry Jordan, Nationwide’s director of mortgages, said: “We know that finding a deposit can be a challenge for those looking to take their first steps towards home ownership.

The changes announced today offer competitive rates for those with small deposits, along with the added flexibility of being able to borrow up to £500,000, and are aimed at particularly supporting first-time buyers, as well as those living in areas with higher property values.”