Hinckley & Rugby is bringing out a 0.99 per cent product for remortgage on Friday, 23 April.

It will be available at 60 per cent LTV and structured as a two-year discount. For capital repayment only, the remortgage will also come with a £999 fee and will ask for a minimum loan of £150,000.

Only 1 months’ payslip and bank statement will be required, although applicants will need to be employed with an employment history of six months and in possession of a permanent contract.

Private Finance associate director Chris Sykes comments: “We saw rates like this when the base rate was 0.25 per cent previously, so with it now at 0.10 per cent this is a fantastic step in the right direction and we hope other lenders follow suit.

“We see this as Hinckley and Rugby having real faith in the market and pitching for that really competitive high quality low-LTV clientele that lenders like to have on their books to lower the overall risk of their lending proposition.

“I am intrigued to see if any lenders will follow suit, and if anyone would be offering this on a fixed rate rather than a discount variable, we aren’t far off, with market-leading two-year fixed rates at 1.06 per cent after gradually reducing over the last few months.”