YBS launches two-year fix at 3.29%

This makes it the lowest two-year fixed rate available direct to customers.

The society already offers a two-year fixed-rate mortgage at 3.59% with a £495 fee which means that the new product gives customers the choice of paying a higher fee and getting a lower rate, or having a higher rate but paying a lower fee.

Higher fee mortgage products appeal to those customers with larger loans whereas lower fee, higher rate products often benefit those with smaller loans, as shown in the example below.

Tom Girling, product manager for mortgages at the society, said: "We've started the year as we mean to go on with great rates and an excellent choice of products. We have been cutting rates across our whole range over the past month, making mortgages even more affordable for those looking to get onto the property ladder or who are ready to remortgage onto a new more competitive deal. Whether customers are looking to fix or want the flexibility of a tracker, we have a competitive deal for all."