Yorkshire Building Society is offering a new market-leading two-year fixed-rate mortgage, with a 0.99% interest rate if you're borrowing 60% of your home's value.

The rate is the joint lowest we've ever seen for a two-year fixed mortgage. Last year HSBC offered a 0.99% two-year fix on a 65% LTV (loan-to-value ratio – ie, the proportion of the property's value you're borrowing).

Yorkshire Building Society's move follows a raft of rate reductions for five-year fixes last month, with mortgage lenders locked in an ongoing price war.

This is in contrast to the turn of the year, when many brokers were predicting rate rises – though some are still warning that rates are unlikely to get much better.

If you're thinking of a two-year fix or any other mortgage, download our FREE 2017 guides for Remortgaging or for First-Time Buyers which explain all the key info. And benchmark your best deal with our Mortgage Best Buys tool.

So what are the details of the deal?

The Yorkshire Building Society deal was launched on Friday 17 March to remortgage and home purchase customers.

It's a fixed-rate mortgage for two years with a 0.99% interest rate on a 60% LTV – but it does come with a hefty £1,495 fee, so you'll need to factor that in to the overall cost.

David Hollingworth, from mortgage broker L&C, said: "This Yorkshire Building Society deal shows how competitive the market is and you certainly can't rule out other lenders responding.

"However, there's equally the question of how much further rates can fall. It'd be surprising to see lenders racing to plumb new lows – waiting for rates to keep falling from their already low level whilst paying a much higher standard variable rate could prove to be a false economy."

Always do a full comparison to find the best deal suited to your circumstances – use our Mortgage Best Buys tool to see what's out there.

What if I'm not near the end of my mortgage?

You may in some cases be able to lock in a good rate up to seven months before the end of your mortgage term, which can protect you if rates rise in the meantime.

For full info on how this works, and the risks, see Long lock-in mortgage help – and always contact a mortgage broker if you're unsure.

You may also be able to save if you're on a pricey fix – as long as your early repayment fees aren't too exorbitant. Use our Ditching your fix? tool to check if you can save.