Santander has launched a five-year fixed rate mortgage of 2.99% exclusively for existing current account and loyal mover customers.
The mortgage is for purchase and remortgages for borrowers with a 40% deposit.
The loan is offered with a £1,495 fee.
Phil Cliff, director of Santander Mortgages, said: "It's really exciting to be able to offer exclusively our existing current account and loyal mover customers such a low mortgage rate giving them peace of mind for the next five years. As one of the major lenders in the UK, we're doing our bit to help customers even in tough market conditions."
Last Friday, HSBC launched a 2.99% five-year fix, also direct-only and its lowest ever seven-year fixed rate mortgage at 3.99%. Both products have a £1,499 booking fee attached.