The Co-operative Bank has launched the UK’s lowest-ever two-year fixed rate at 1.09 per cent.
The direct-only product is available on loans up to 60 per cent LTV to new and existing borrowers and has a £1,499 fee. Moneyfacts has confirmed this is the market’s lowest-ever two-year fix.
The lender has also launched its lowest ever 90 per cent fixed rate. The two-year fix is priced at 2.64 per cent and has a £1,499 fee.
Head of mortgages Stuart Beattie says: “With rates at record lows, it’s a great time for customers to consider taking out a fixed rate product. We are delighted to offer the UK’s lowest ever two-year fixed rate mortgage, which is ideal for borrowers with larger suit the needs of different borrowers.”
The rate war, which began last summer, has heated up in the past week, with HSBC and Barclays introducing five-year fixed rates at 1.99 per cent.