From tomorrow the lender will offer a two-year fixed rate product at 4.59% and a five-year fixed rate at 4.99%, both with product fees of £995. Six other products will also launch, including a pair of buy-to-let mortgages and two fee-free fixed rates.

NatWest has also cuts the rate on its two-year fixed rate product at 60% loan-to-value (LTV) to 1.95%. It comes with a product fee of £1,495.

Direct lenders Chelsea BS, Cheltenham & Gloucester, Halifax, HSBC, Lloyds TSB, Norwich & Peterborough BS, Tesco Bank and Yorkshire BS also offer products below 2%, according to data from Moneyfacts.

Mark Bullard, head of sales at NatWest Intermediary Solutions, said: “Building on the rate cuts we introduced to our range a couple of weeks ago, I am delighted that we are able to add a number of new mortgages to our portfolio.

“The significant reductions we have made to the rates on our higher LTV deals, combined with our lowest ever 2 year fixed rate 60% LTV deal at 1.95% and the sharpening up of the popular 3 year deals means we have a really attractive range.”

New deals:
• 2 year fixed rate 4.59%, 90% LTV, £995 product fee
• 3 year fixed rate 3.39%, 80% LTV, £995 product fee
• 3 year fixed rate 3.99%, 80% LTV, no product fee
• 5 year fixed rate 4.99%, 90% LTV, £995 product fee
• 2 year tracker 2.19%, 60% LTV, £995 product fee
• 2 year tracker 2.69%, 60% LTV, no product fee
• 2 fixed rate buy-to-let 4.09%, 75% LTV, £495 product fee
• 2 tracker buy-to-let 3.89%, 75% LTV, £495 product fee