The direct-only product pushes HSBC off the best rate top spot after it launched a 1.49% last week.

The 60% West Brom deal tops HSBC’s £1,999 fee with a £99 booking charge and £2,395 completion fee.

Moneyfacts finance expert Rachel Springall said the cost differential is 0.01% between the two deals, but the high fees on both West Brom’s and HSBC’s products may not appeal to everyone.

“Overall, borrowers would do far better to look at the overall package, including extras like free legals, or other lower fee deals like the Post Office with its 1.99% fix alongside a £995 fee,” she said.

“Since the price war began in August 2012, we’ve seen the lowest rates ever at 60 to 75% and there is a lot more to come I suspect,” said Springall.

The West Brom has also introduced a new two year fixed rate mortgage at 1.99% with a maximum loan to value (LTV) ratio of 75%. For intermediaries, rates have been reduced by up to 0.26% and now start from 2.19% up to 60% LTV with a free first standard valuation.

James Wright, the West Brom’s divisional director for marketing and e-commerce, said: “Those looking to minimise their monthly repayments can opt for a deal with a particularly low rate of interest, while others who want to reduce up-front costs can consider a mortgage with an incentive such as a free valuation.”