The lender has launched the product today, Friday 1 May. The lender said it was the lowest ever fixed rate mortgage.

However, the product is restricted to borrowers who have 40% deposits or more. It also comes with a fee of £1,499.

The 1.09% deal is fixed until 30/06/17 and is available to new and existing borrowers.

The bank has also lowered other rates in its range and a three-year fixed rate mortgage is on offer at a rate of 1.89%, also with a £1,499 fee.

For borrowers with smaller deposits, a two-year fix has been launched at 90% loan-to-value. This product is on offer at 2.64% and fixed until to June 2017.

Stuart Beattie, head of mortgages at The Co-operative Bank, said more people were looking to make savings on their mortgage.

“With rates at record lows, it’s a great time for customers to consider taking out a fixed rate product,” he said.

“We are delighted to offer the UK’s lowest ever two-year fixed rate mortgage, which is ideal for borrowers with larger suit the needs of different borrowers.”

Charlotte Nelson of Moneyfacts said: “At 1.09%, this two-year fixed rate mortgage is the lowest ever on better time for borrowers to fix their mortgage and secure low monthly payments for a significant period of time.”