"There’s a big difference between the average SVR and the rates we’re offering, so being able to lock the rate in for 5 years gives certainty"
From tomorrow, all new mortgage customers will be able to apply for a five-year mortgage at the two-year rate, via one of the bank's selected partners.
Five-year fixed rates are now available from 1.29% at 60% LTV, 1.34% at 75% LTV and 1.49% at 80% LTV.
Higher-LTV rates include a 1.59% 85% LTV and a 90% LTV from 1.99%.
Director of Retail Mortgages, Maria Harris, said: “This move is entirely unprecedented; it’s important for us to make this available to customers now. We are in a position where we can help people improve their financial situation for the long term by reducing the amount they have to pay on their mortgage.
“Moving your mortgage to a better rate can be one of the most significant savings that a customer can make. Since the financial crisis, many people have stayed on their lender’s SVR, but there’s a big difference between the average SVR and the rates we’re offering, so being able to lock the rate in for 5 years gives certainty around their mortgage payments, while the Brexit negotiations are worked through and we see the impact on inflation, along with any Bank of England base rate increases which may come along."
