ING Direct to launch 1.94% two-year mortgage

The tracker product will be offered by the lender at Bank Base Rate + 1.44%, a hefty reduction its current price of BBR + 1.99%.

The product has a £195 upfront booking fee and a £1,750 product fee which can be added to the loan amount or paid immediately.

As well as offering the 1.94% deal, the lender will also re-price a number of other products across its range.

ING's move into the sub-2% space means it will be the sole intermediary lender offering products below that price point.

Mortgage Solutions exclusively revealed last month that the lender would stop accepting new mortgage applications from February 28th following its purchase by Barclays.

Moneyfacts said that direct only lender HSBC currently offers a 1.98% two-year fix while Norwich and Peterborough, Yorkshire and Chelsea building societies offer a 1.99% fixed rate.

The new products will be available through the broker relationships ING holds with L&G, Openwork, Sesame and PTFS.

Elsewhere, First Direct will also reduce its five-year fix to 2.69%, with fees of £1,999. The product will be available up to 65% LTV and will be the lowest priced five-year fix on the market.