A two-year fixed with a rate of 2.69 per cent and fees of either £999 for loans of over £500,000 or £1,499 for loans over £1m has been introduced for borrowers with a 15 per cent deposit. This mortgage will be available from 8 January. 

 

Rate changes 

Also from tomorrow, the rates of mortgages available to new customers will be cut by up to 15 basis points. 

This includes a two-year fixed at 75 per cent LTV which has gone down from 1.89 per cent to 1.79, as well as a two-year fixed at 85 per cent which has been reduced from 3.11 per cent to 3.04 per cent.

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Meanwhile, products for existing borrowers with low equity have increased by 40 basis points.  

The two-year fixed at 90 per cent LTV with a £1,499 fee has gone up to 2.99 per cent and the £999 fee option has increased to 2.79 per cent. 

The 85 per cent LTV mortgage for existing customers with either a £999 or £1,499 fee has risen from 2.29 per cent to 2.69 per cent. 

The products with lower fees apply to borrowers requiring loans of £500,000 and over, while the higher fee products apply to those who require loans of £1m and above.