Accord Mortgages has launched a 0.99% two-year fixed rate mortgage at 80% loan to value (LTV).
While there have been lower rates in the past - such as Yorkshire Building Society’s 0.89% deal - this is the lowest ever mortgage rate for borrowers with a 20% deposit, according to comparison service Moneyfacts.
The previous cheapest rate at 80% LTV was 1.24%, offered by HSBC, First Direct and Sainsbury's Bank.
Both home buyers and remortgage customers can apply for the deal, which comes with free standard valuation and a £1,495 product fee.
The lender says it expects the mortgage to be popular and is encouraging borrowers to act quickly to take advantage.
Of course, check the deal is right for you first – including fees - using Moneywise’s mortgage comparison tool.
Accord Mortgages is an arm of Yorkshire Building Society, but its products are only available through mortgage brokers, which means you can’t get the mortgage directly from Yorkshire Building Society.
David Robinson, national intermediary sales manager at Accord Mortgages, says: “It’s important to be aware that this deal is only available via a broker and will be on offer for a limited time. So anyone interested in snapping up this great rate should get in touch with their broker fast.”