Chelsea Building Society has jumped ahead of the pack with a 0.98% base rate tracker, confirmed as the lowest rate available on the market today.
The two-year, 65% Loan to Value (LTV) mortgage comes attached to a £1,545 fee and tracks Bank Base Rate + 0.48%.
This comes a week after Yorkshire Building Society launched the lowest-ever fixed rate mortgage, with a 1.07% two-year fixed rate at 65% LTV with a £1,369 product fee.
Rachel Springall, spokesperson for Moneyfacts, said: “Breaking the 1.00% barrier is sure to grab the attention of borrowers looking for a competitive rate on their mortgage.”
Mike Regnier, Chelsea Building Society’s chief commercial officer, said: “A tracker rate can mean mortgage repayments are smaller when rates are low but borrowers should be mindful that any future rises in the Bank of England base rate will increase their mortgage repayments so they should consider whether this is appropriate for them.”
The previous record was held by HSBC which launched the lowest-ever variable rate at 0.99% in October 2014.
