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It is offering a new one-year fixed-rate product with a rate of 3.49 per cent. The rate then reverts to bank base rate plus 2.99 percentage points.

Alternatively, buy-to-let borrowers can opt for a product tracking the bank base rate plus 1.99 percentage points for the first year. This mortgage also reverts to base rate plus 2.99 percentage points after the initial 12-month period.

Both products have a fee of 3.5 per cent of the mortgage amount, with a minimum fee £595, and early repayment charges only apply for the first year.

Andy McQueen, managing director of The Mortgage Works, said the lender remained focused on offering borrowers a choice of products.

"These two new products will cater for both customers who are seeking to fix their payments over the next year, and those who are comfortable with their payments tracking the bank base rate.

"With early repayments charges only applicable for the first year, customers can benefit from competitive interest rates for a year and then reassess their mortgage needs."

The two new products are not available to limited companies, and all other The Mortgage Works products remain unchanged.