A two-year fixed rate at 3.09% and £999 arrangement fee has been added to the 90% bracket. The existing five-year fixed rate which was previously priced at 4.25% has been reduced to 3.89% and the two-year variable rate was cut from 3.19% to 2.99%.

The society is the latest in line of lenders cutting rates in the higher end of their LTV ratios. Family Building Society made reductions to the rates on its 95% LTV mortgages while Halifax targeted its 85% LTV range. TSB focused attention on its shared ownership and shared equity ranges which allow borrowers to take a mortgage out up to 90% LTV.

The Bank of England signalled that a rate rise would come at the start of next year in a bid to bring inflation in line with the country’s 2% target.

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