Yorkshire Building Society has launched two 2-year discount variable rate mortgages at 1.15% to 65% loan-to-value and 1.23% to 75% LTV.
Both mortgages are available for house purchase and remortgage customers and come with an £845 fee.
The lender’s standard variable rate currently stands at 4.74%.
Brendan Gilligan, mortgage product manager at Yorkshire Building Society, said: “Many borrowers continue to keep an eye on interest rates, and want to make the most of the low base rate environment.
“However, swap rates – upon which fixed rate mortgages are priced – have fallen so much recently that they are becoming cheaper to price than tracker mortgages.
“A discounted SVR product allows us to offer a competitive rate for those who want to keep repayments as low as possible but who understand they may go up or down in future.
“These new mortgages have the lowest rates we currently offer so they may appeal to borrowers looking for the lowest possible monthly repayments over a short period. However the rate is variable, meaning it could rise as well as fall, so customers should factor this into their budget.”
Customers can redeem their mortgage at any time during the discounted period and incur a 1% early repayment charge.