Leeds & Holbeck Building Society is offering what it claims to be the cheapest-ever 10-year fixed-rate mortgage at 5.25 per cent.
The rate follows rival Yorkshire Building Society unveiling what it claimed to be the lowest flexible 10-year fix at 5.44 per cent last week.
The L&H rate is only available to clients taking its Homecover insurance, otherwise the rate rises to 5.49 per cent.
Maximum loan to value is 95 per cent loan. Completion fee is £399. Capital repayments can be made of up to 10 per cent a year. Early repayment charges range from six months' interest at an SVR of 5.75 per cent in the first three years to two months' interest in the final year.
Procuration fee is £125 up to £59,999 and 0.25 per cent of the loan over £60,000.