"Reducing rates on our flexible product range will help open up the market to those who in the past thought offset came at a premium."
The range includes both two and five-year fixed products with rates starting at 1.19%.
For lending over £1m, two-year fixed rates now start at 1.45% from 50% LTV.
Five-year fixed rates are available at 1.75% up to 50% LTV and 1.99% between 50% and 75% LTV.
The lender is also offering a five-year fixed rate at 1.99% up to 75% LTV.
Martin Fleming, Managing Director, Scottish Widows Bank, said: “In this market there’s a growing number of people struggling to decide whether to pay down their mortgage when remortgaging or set the cash aside in a low interest environment.
“Reducing rates on our flexible product range will help open up the market to those who in the past thought offset came at a premium.
“With rates at all-time lows, enhanced repayment vehicles and lower product fees, we are providing an attractive option for those facing that dilemma, while helping plug the gap in the market for products at 50% LTV which we are confident will be welcomed by brokers.”
