The West Bromwich Building Society is reducing rates on its five-year fixed mortgages by up to 0.55%.
The newly-priced five-year fix starts from 2.09% for new purchasers and remortgagers with a deposit of 35%.
The biggest rate reduction in the range has dropped from 3.14% to 2.59% with an 85% loan-to-value. Borrowers with a smaller deposit, including first-time buyers, are being offered a sub-3% rate for the first time by the Society at 2.89% with a 90% loan-to-value, repriced from 3.39%.
Incentives across the range include no completion fees and a free first standard valuation.
All products for new purchasers have a £199 booking fee, but this does not apply for remortgage customers.
Lower deposit borrowers, those at 80%, 85% and 90% LTV, qualify for a cashback payment of £500 if they are purchasing or moving home.
David Taylor, West Brom’s head of products, said: “Not only are we committed to offering our borrowers competitive rates of interest, we also strive to deliver true value by keeping fees to a minimum and adding incentives that cut down the overall cost of buying a home.”
The Society is also offering a ten-year deal fixed rate of 2.79% at a maximum loan-to-value of 65%.
For those with a smaller deposit there is a ten-year fix at 2.99% with an 80% loan-to-value.
The mortgage price war has escalated in recent months following hints by Bank of England Governor Mark Carney earlier this year that the Bank rate could be cut in the event of a Brexit vote.
Since the financial crisis in 2008 mortgage rates have steadily fallen.
With lenders slashing rates, experts believe there has never been a better time to get a mortgage.
HSBC recently launched a two-year fixed rate mortgage that has an interest rate of 0.99%, the lowest since records began.
Nationwide has cut its fixed rate and tracker mortgages by up to 0.25%, while Halifax has reduced its rates on its first-time buyer mortgage range by 0.30%.
Coventry Building Society has also launched the lowest ever 10-year fix at 2.39%.
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