The Yorkshire Building Society has launched what it says is the lowest fixed rate mortgage available on the market, a 1.17% two-year fixed rate.

The mortgage is available at 65% LTV and has a £1,345 product fee.

Options for customers who want to offset their mortgage include a 1.37% two-year fixed rate with a £1,345 product fee at 65% LTV.

Brendan Gilligan, product manager at Yorkshire Building Society, said: “As a financially robust mutual lender, we reinvest our profits into the business to provide the best rates possible for our members.

“This enables us to offer best buy mortgages which help our members own the home they want to live in. We’re proud to offer the lowest two-year fixed rate mortgage currently available on the market at 1.17%.”

Charlotte Nelson, spokesperson at Moneyfacts.co.uk, added: “This 1.17% deal from Yorkshire Building Society is currently the lowest two-year fixed rate mortgage on the market. This means it will be a highly attractive choice for borrowers with a 35% deposit who are looking to keep their monthly repayments down.”