Britain's biggest building society has cut its mortgage rates by up to 0.25 percentage points.

Nationwide slashed rates on various deals aimed at first-time buyers, home movers, and those needing to remortgage.

It is the third time this month that the mutual has cut prices, having also reduced rates by up to 0.28 per cent early last week.

It now offers a market-leading 4.19 per cent two-year fixed rate for those moving home with at least a 40 per cent deposit, though this comes with a hefty £1,499 fee.

The next lowest rate is offered by Coventry Building Society at 4.24 per cent, with a £999 fee.

On a £300,000 mortgage being repaid over 25 years, Nationwide's new deal would mean paying £1,615 a month for the next two years.

You can compare how fees affect the overall cost of your mortgage using This is Money's true cost mortgage calculator.  

Nationwide's lowest five-year fixed rates now start from 4.31 per cent, bettering the next best deal from NatWest at 4.34 per cent.

First-time buyers with a 15 per cent deposit can now secure a five-year rate of 4.62 per cent from Nationwide with a £999 fee attached.

Those with a 10 per cent deposit can bag a two-year fix at 4.82 per cent with a £999 fee. 

Someone buying their first home with Nationwide's 4.82 per cent deal could expect to pay £1,149 a month for the next two years, if they took their mortgage on a 25-year term.

Households looking to remortgage can also make savings. Someone with 40 per cent equity in their home can now bag a two-year fix at 4.49 per cent or a five-year fix with a 4.59 per cent rate - both come with a £999 fee.

Brokers have urged borrowers to lock in deals now with unpredictability on the horizon. While mortgage rates remain relatively stable for now, the Iran and US ceasefire is on a knife edge and Andy Burnham is expected to replace Keir Starmer as Prime Minister next month.

Justin Moy, managing director at Chelmsford-based broker EHF Mortgages said: 'As always, the recommendation is to pick up a new deal as soon as possible, as the Middle East conflict can flare up at any time, and a change of Prime Minister can cause market jitters as well.'

Speaking to the news agency Newspage, Rohit Kohli, director at Romsey-based The Mortgage Stop, added: 'This is about as good as it gets in the UK – which is precisely why borrowers should be acting now, not waiting to see what happens next. 

'We're getting a new Prime Minister. The Iran conflict is ceasefire on paper, knife edge in practice.

'The market is moving in the right direction today – but any of those factors could change the picture within weeks. If the deal stacks up now, there's no logic in holding out for better.'