The Bank has also reintroduced 60% LTV green remortgage rates and new 60% and 75% LTV two-year fixes.

Since the start of 2024, the average five-year fix has not dropped as much as its two-year counterpart.

Five-year fixed rates have reduced by up to 14bps and now start from 4.11%.

Two-year product rates now start from 3.59%.

Buy-to-let remortgage rates have seen the largest reductions.

Rent and mortgage spending grew 8.2% year-on-year in November, as more homeowners rolled off fixed rate mortgages onto higher interest rates.

The lender has launched new two-year and multi-loan products.

24% of first-time buyers worry that mortgage rates won’t drop quickly enough for them to afford a loan.

The lender says it has focused its cuts on high-LTV rates to support first-time buyers. 

5% of all mortgages will see payments increase by more than £500 per month.