A two-year fixed mortgage at 80 per cent LTV with no fee has been cut by five bps to 2.48 per cent, while at 85 per cent LTV the free-fee option has a rate of 2.93 per cent down from 3.09 per cent. 

Mortgages for those with smaller deposits have seen the largest reduction, including a fee-free two-year fixed deal at 90 per cent LTV with a rate of 3.48 per cent, cut from 3.69 per cent. 

The £995 paying option at the same tier has decreased 3.44 per cent to 3.24 per cent. 

Two-year fixed remortgages have been reduced by up to 14 bps and five-year fixes have seen cuts of up to 15 bps. 

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Two-year fixed remortgages now vary from 1.17 per cent at 60 per cent LTV to 2.84 per cent at 85 per cent LTV.  Meanwhile, rates for five-year fixed remortgage deals range from 1.31 per cent at 60 per cent LTV to 2.7 per cent at 85 per cent LTV. 

For first-time buyers, the two-year fixed at 80 per cent LTV has been reduced by 0.05 per cent to 2.48 per cent and the five-year equivalent has decreased by 15 bps to 2.58 per cent. Both products have no fee and offer £250 cashback. 

Elsewhere, the bank’s green mortgage range has seen reductions up to 0.16 per cent for two-year fixes and product switches have been cut by up to 0.09 per cent. 

Changes are effective from tomorrow.