Chelsea Building Society has cut its two-year fixed rate to 60 per cent loan-to-value by five basis points to 1.69 per cent.
The direct-only product comes with a £1,545 fee and reverts to the lender’s standard variable rate, which is currently 5.79 per cent.
The cut comes four days after Tesco launched its lowest ever two-year fixed rate at 1.74 per cent, up to 60 per cent LTV.
Chelsea has also cut its five-year fixed rate deal from 4.34 per cent to 4.29 per cent for loans at 90 per cent LTV.
Chelsea product manager Brendan Gilligan says: “We remain committed to providing borrowers with exceptional mortgage rates and have made these reductions to two of our most competitive deals.”