The bank also cut rates on its 95 per cent Mortgage Guarantee Scheme product and across a range of 20 other mortgages at all LTV tiers.

The new sub-one per cent product comes with a fee of £999, and is based on a 0.05 per cent cut from the earlier price.

The lender also re-introduced a three-year fixed option at 60 per cent LTV, with a rate of 1.34 per cent, a cut of 0.15 per cent from when it was last available in July 2020 – and no fee.

Additionally, the lender’s two-year fix at 75 per cent LTV, with a £999 fee, was cut by 0.1 per cent to 1.19 per cent.

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The rates on the Mortgage Guarantee Scheme two-year fixed products were reduced for the no-fee option by 0.2 per cent to 3.79 per cent, and for the £999 option by 0.15 per cent to 3.59 per cent.

The five-year fixed scheme product rates were cut by 0.2 per cent, down to 3.99 per cent for the no-fee option and to 3.79 per cent on the £999 fee.

“Purchase and remortgage activity is on the rise. Those who are looking at moving onto, or up, the property ladder, or who have a fixed-rate deal coming to an end, can take advantage of some of the lowest rates we have offered for a while,” said Michelle Andrews (pictured), head of buying a home at HSBC UK.