Nationwide has intensified the mortgage price war by announcing big cuts to some rates that propel it to the top of the best-buy tables. Britain’s biggest building society has “blown the doors off” with reductions of up to 0.81 percentage points, said brokers. Its new mortgage rates now start at 3.84% – the lender’s lowest rate for eight months. Banks and building societies have for some weeks been engaged in a rate war in which they have cut the costs of new fixed-rate deals. Barclays shaved up to 0.6 percentage points off its fixed rates with effect from Monday. However, recent increases in money market swap rates – which largely determine the pricing of new fixed deals – have prompted a few lenders to increase their rates over the past week or so. Santander has announced small increases to the pricing of some of its fixed-rate deals that take effect on 24 January. Nationwide’s new rates, which go on sale on the same date, include five-year fixed-rate home loans aimed at home movers and first-time buyers starting at 3.85%. It said it was also cutting some “switcher” rates – aimed at Nationwide mortgage customers coming to the end of their existing deal and looking for a new one – by up to 0.81 percentage points, with rates starting from 3.84%. Katy Eatenton, a mortgage and protection specialist at Lifetime Wealth Management, said the Nationwide cuts “will put them in pole position on the lending starting grid”. She added: “It also squashes any doubt in the market after Santander announced increases today.” Justin Moy, the managing director at broker EHF Mortgages, said Nationwide had “jumped straight to the top of [the] best-buy tables for many deals”, while Charles Breen, the founder of Montgomery Financial, said the society had “timed this one to perfection, just as other high street lenders are increasing their rates. They have blown the doors off and will now be in prime position to steal massive market share from their competitors.” Nationwide said the latest changes meant it was now offering sub-4% rates for the first time in eight months. Many homeowners who had to take out new mortgages last year saw their monthly repayments double, or worse, as they came off cheap deals taken out several years earlier. It is estimated that about 1.6m cheap fixed-rate deals are due to expire in 2024, with these borrowers still typically facing a big jump in interest payments when they switch to a new product.