Yorkshire Building Society is slashing mortgage rates at 65 per cent and 85 per cent loan-to-value (LTV) from tomorrow (25 January).
The lender is offering a two-year fixed rate deal at 1.16 per cent for borrowers with a 35 per cent deposit, with a £1,495 product fee.
Also available at the same LTV is a three-year fixed rate mortgage at 1.58 per cent with a £995 fee.
On offer at 85 per cent LTV is a two-year fixed rate at 1.52 per cent, or a three-year fixed rate at 1.85 per cent. Both deals come with a £995 fee.
Each mortgage is available to both buyers and remortgaging customers.
Charles Mungroo, mortgage product manager of Yorkshire Building Society, said: “We pride ourselves in offering a wide range of mortgage options to help people buy the home they want.
“These four mortgages are designed to support borrowers of various types, including those with larger or smaller deposits and first time buyers and those already on the housing ladder.”
David Hollingworth, associate director of communications at L&C Mortgages, said at 1.16 per cent, the two-year fixed rate deal takes the title of being the lowest rate available on the market.
Mr Hollingworth said: “The end of last year saw fixed rates drift upwards but the New Year has seen that stabilise and we’re now seeing lenders reverse that trend, with improvements to deals becoming a more common sight.
“That is good to see and competition in the market could see others continue to tweak pricing in a bid to maintain their position in the market.”