The lender will launch the two-year deal for mortgages up to 65% LTV. A £199 booking fee with £300 arrangement fee applies to the product, which will be available from tomorrow.

The refresh comes after Coventry announced its decision to withdraw its entire range of interest-only mortgages earlier today.

Other new products available include a four-year fix at 2.99%, also available on mortgages up to 65% LTV. The product comes with fees of £999.

Colin Franklin, managing director at Godiva Mortgages, said: “Many borrowers want the security of a competitive fixed rate without having to pay a large arrangement fee.

“Our 2 year fixed rate at 2.59% with an arrangement fee of just £300 is ideal. We also expect our 4 year fixed rate at just 2.99% to be very popular with borrowers looking to lock into a fantastic low rate for a longer period.

“And for those looking for more flexibility, we have launched a highly competitive Flexx for Term at 3.99% available up to 85% LTV with no ERCs.”