The Co-operative Bank for Intermediaries has reduced selected residential and buy-to-let mortgage rates, bringing new products below the 4% threshold.

Residential rates have been cut by up to 10 basis points, while buy-to-let products are down by as much as 12 basis points.

Among the highlights is a 3.85% two-year fixed rate to 31 January 2028 at 60% loan-to-value, available for remortgage only with a £999 fee.

The lender is also offering a 3.97% two-year fixed rate to the same date at 80% LTV, with a £1,999 fee and a minimum loan size of £750,000.

Fred Sharp, director of intermediary distribution at the Co-operative Bank, said: “It’s great to see sub 4% rates are becoming more of a permanent fixture in the market.

“We hope brokers can take this opportunity to support their clients, whether they are looking to remortgage or buy a new home.”