Yorkshire Building Society has launched a 0.99% 2-year fix to 60% loan-to-value with a £1,495 fee.
This marks the first time the society has offered a fixed rate mortgage below 1%, though it also has a 65% LTV 2-year discount at 0.98%.
James Farrow, senior mortgage manager at Yorkshire Building Society, said: “We have seen fixed mortgage rates creep up gradually in recent months so seeing it fall to 0.99% is very welcome news for borrowers.
“We always seek to keep the cost of borrowing as low as possible and offering the lowest fixed rate mortgage in our 152-year history clearly reflects that.”
The society also offers lower fee and fee-free options for those wishing to keep up-front costs down.
Rachel Springall of Moneyfacts.co.uk, said: “It also has some flexibility by allowing overpayments and borrowers would be wise to take full advantage of this to reduce the mortgage term.
“As with any deal, it’s important that borrowers work out the overall true cost to see if it’s the best possible choice for them.”