The Yorkshire Building Society has added a two-year tracker mortgage with a rate of 0.78%.

It available to borrowers with a 35% deposit, which comes with a £995 fee and free standard valuation.

The mutual has also introduced a number of other trackers, with a 0.89% tracker rate offered to homebuyers or those remortgaging with a 25% deposit, which also comes with a £995 fee and free standard valuation.

For borrowers with the smallest deposits, a two-year rate of 2.59% is available to those requiring 95% loan to value and who wish to choose a home loan that track’s the Bank’s base rate.

Ben Merritt, senior mortgage manager at Yorkshire Building Society, said: “In a really competitive mortgage market, we’re pleased to be able to offer our lowest ever mortgage rate to give borrowers more choice.

“The recent increased availability of tracker mortgages, including the introduction of our first tracker mortgage for some years, expands the number of options available to borrowers who, in a low rate environment, may wish to take advantage of lower monthly payments.

“As with any variable mortgage that tracks the Bank’s base rate, it’s important to make sure any increase in monthly payments could be afforded, should the base rate rise.”