The product is available both for house purchase and remortgage with a £1895 product fee
Lloyds TSB research has found that this year fixed rates have accounted for 43% of the market, compared to 73% in 2007, with the average rate at .62%.
Data shows that fixed rate deals hit a peak of 13.85% in 1990.
Stephen Noakes, commercial director of mortgages at Lloyds TSB says: “Two decades on from the peak of fixed rate products, we’re launching a new, market leading rate. Whether you’re looking to buy a new home or remortgage to the stability of a fixed deal, this provides certainty of an attractive rate for two years.”
Homebuyer customers will also benefit from the free Lloyds TSB Home Harmony service, to help them settle into their new home.
The product is available in branches of Lloyds TSB and Cheltenham and Gloucester.