Halifax launches 0.98% mortgage rate

The tracker product is available up to 60% LTV for home movers only and has a £999 fee.

Alongside the tracker launch, Halifax has also introduced a two-year fixed rate for home movers at 1.05% with a £1,499 fee or 1.08% with a £999 fee.

In October 2018, Leeds Building Society added a number of discounted variable rate mortgage products to its residential range which started from 0.99% up to 65% LTV.

Prior to the Bank Rate rise in November 2017, a number of lenders offered sub-1% mortgage products, but the increase in interest rates caused the majority of providers in the variable tracker market to pass on the cost to borrowers.

Aaron Strutt, communications director at Trinity Financial, commented: “The cheapest two-year fixes are edging closer to the 1% mark as the lenders continue to improve the pricing on their super-low deals.

“Many people in the industry are wondering how the lenders are making money on these best buy rates and the general consensus is they are not making much of a return.”

Darren Cook, finance expert at Moneyfacts, added: “It is still unclear in which direction the Bank base rate will move next and by how much, but a tracker rate mortgage under 1% may catch a few borrowers’ attention.”