The company is also planning to increase maximum borrowing for large borrowers with a loan to value of 60 per cent.
Matthew Carter, the organisation's director of mortgages, said the firm was "pleased" to be able to reduce its rates.
He added: "These changes demonstrate our commitment to offering good value mortgage deals in what continues to be a challenging time in the market."
Recent research by Nationwide found that around 25 per cent of borrowers are expecting to pay their lenders' standard variable rate longer than they would have previously planned.
It was also found that 56 per cent are more likely to shop around for a new deal than they were last time.
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