Coventry for Intermediaries has launched is lowest ever two-year fixed rate mortgage at 1.29 per cent.
For a loan-to-value (LTV) of 50 per cent it will offer a 1.29 per cent rate for residential mortgages for two years with a £999 fee.
For buy-to-let mortgages it will offer a two-year fixed rate at 1.79 per cent (reduced from 1.99 per cent) with a 65 per cent loan-to-value (LTV) and a £1,999 product fee.
Kevin Purvey, director of intermediaries at Coventry for Intermediaries, said: “With competitive rates, a range of LTV options and no application fee, our two-year fixed products are ideal for clients looking for the security of fixed mortgage payments over a shorter term.
"In addition, all of our products include a valuation of up to £670 for residential and £700 for buy-to-let mortgages”.
Paul White, consultant at Belgravia Insurance Consultants, described the current spate of lenders lowering their rates as hitting the bottom of the market when it came to cheap home loans.
He said: "It is a fantastic time to go for a fix."