For products with fixed term of less than five years, the buy-to-let stress rate has gone down from 7.6 per cent to 7.15 per cent.

The rate for assessment of background buy-to-let properties has gone down from 7.6 per cent to six per cent.

Products with a fixed term of five years or more, the buy-to-let stress rate will remain the same at six per cent.

A spokesperson said: “As a responsible lender, we set our stress testing for interest rate risk to account for future predictions of where interest rates might fall. Since the mini budget, the market outlook for interest rates has reduced slightly, and therefore our changes reflect these latest views.”

From 9am tomorrow the lender will change rates in its two and five-year fixed residential range, and will cut rates on its two-year new build deals.

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Two-year fixed residential rates start from 4.75 per cent and five-year fixed rates begin from 4.16 per cent.

New build deals are priced from 5.73 per cent.

Rate cuts have also been applied to two and five-year products in its government scheme ranges.

For instance, shared ownership begins from 5.47 per cent, Help to Buy starts from 5.15 per cent and First Homes are priced from 5.3 per cent.

The lender has also extended the end dates of our two-year new build and government scheme products to September 2025.