Halifax has launched a new two-year fixed rate mortgage with an interest rate of just 2.44 per cent for borrowers who have a loan-to-value (LTV) ratio of 60 per cent.
The new product comes with a big fee of £1,995 which means that other products with slightly higher rates but lower fees could be cheaper when calculating the overall cost.
Halifax is also reducing rates on a number of other mortgage products.
It has lowered its two-year fixed remortgage rate for borrowers with an LTV of up to 60 per cent and for borrowers with just 20-25 per cent equity by 0.10 per cent.
Other two-year fixed rate and tracker mortgage products have been cut by 0.05 per cent.
Stephen Noakes, Mortgage Director, Halifax, comments: "This rate should prove very tempting to those customers looking to remortgage. Lower fixed rates really help to minimise customers' monthly payments, and this is currently the lowest in the market."
"Halifax is working hard to challenge and to kick-start the remortgage market, and this product should really help those who wish to bring down their monthly payments."