The announcement is the first in a series of product updates and rate cuts being revealed by the lender over the coming weeks.

The new rate is available on Kensington’s Select range on a two-year fix at 70% loan-to-value (LTV). A completion fee of £999 applies and is currently available on all sourcing systems as well as their own broker portal.

Craig McKinlay, new business director at Kensington Mortgages, said: “We’re always striving to offer the most competitive and affordable deals to help all borrowers at every stage of life.

“Our newest rate is one of the lowest available on the market from a specialist lender and we feel this shows our continued commitment to helping those who are underserved.”