The lender is cutting costs on select 95% loan to value (LTV) purchase deals, as well as remortgage deals from 60% LTV and up to 80% LTV.

It means Sainsbury’s will now offer a two-year fee-free fixed rate of 3.19% and a five-year rate of 3.29% – both at 95% LTV and with £500 cashback.

The lender has also reduced the rate on its five-year, fixed-rate buy-to-let remortgages to 2.56% at 75% LTV with a £995 product fee and £250 cashback.

It comes after Sainsbury’s last month cut buy-to-let purchase rates at 75% LTV and  remortgage rates have been cut at both 60% and 75% LTV.