But, there are strings attached.

The range is only available direct through Nationwide’s branches for existing customers moving home and first-time buyers.

Customers have to use the bank's FlexAccount as their main bank account and are required to deposit at least £750 a month to qualify for the deals.

New FlexAccount customers have to use Nationwide’s account transfer service to qualify.

Interesting data released by the Financial Services Authority (FSA) shows that lenders have pledged £38bn in new mortgage lending.

This is £10bn more than was pledged this time last year. Lending for house purchase now accounts for more new lending than remortgages for the first time since late 2007, the FSA says.

In Quarter 2, House purchase lending represented over half of new advances at 51%, and 55% of new lending commitments with Fixed-rate deals accounting for 65% of new lending volumes.

Hoever, the data also shows how steep the fall has been in high LTV lending with the proportion of new lending at over 90% LTV has fallen from its 2007 peak of 15%, to 6% in late 2008 and just under 3% in Quarter 2.

Overall there is optimism that these new commitments suggest the market has stopped falling and may now be picking up, helped by lower interest rates and improved confidence amongst borrowers