The interest rate has been cut from 6.09% to 5.69% and the deal does not have any arrangement fees.

James Hillon, head of mortgages for Co-operative Financial Services, said: “We recognise times are still difficult for those looking to get onto the property ladder so the rate reduction on our two-year fixed product will provide a welcome boost for first-time buyers.”

He added: “Customers who want to take out one of these mortgages will also have the additional flexibility of a range of direct channels, including internet, telephone and branch.”