First direct has launched a 65% LTV 1.99% two-year fixed rate offset mortgage.

It comes with a £1,499 booking fee.

In addition, the direct bank has also cut the rates on the majority of its mortgages by 0.2 percentage points allowing borrowers with 25-35% deposit or equity to take advantage of these lower rates, which are offered with and without fees.

All existing offset mortgage rates have reduced by 0.2 percentage points no matter what LTV or term.