The Co-operative Bank has launched a new two-year fixed rate mortgage, priced at 1.09% up to 60% LTV.

Moneyfacts has said it it the UK’s lowest ever two-year fix.

It is available to new and existing borrowers and comes with an arrangement fee of £1,499.

Stuart Beattie, head of mortgages at the Co-operative Bank, said: “With rates at record lows, it’s a great time for customers to consider taking out a fixed rate product. We are delighted to offer the UK’s lowest ever two-year fixed rate mortgage, which is ideal for borrowers with larger suit the needs of different borrowers.”

Charlotte Nelson of Moneyfacts added: “At 1.09%, this two-year fixed rate mortgage is the lowest ever on better time for borrowers to fix their mortgage and secure low monthly payments for a significant period of time.”

The Co-operative Bank has also launched its lowest ever 90% fixed rate mortgage deal – fixed at 2.64% until to 30/06/17 – along with a three-year fixed rate at 1.89% for loans up to 60% LTV. These deals also come with a £1,499 arrangement fee and are available to new and existing borrowers.