The mortgages are an extension of the lender’s existing discounted rate deals and offer a combination of incentives.

The range now includes a 0.99% two-year discount mortgage available up to 65% of the property’s value with a £1,999 fee. Borrowers looking for a fee-free option can choose a 1.47% two-year discount mortgage up to 65% loan-to-value with no fee.

For those with a more modest deposit there is a 1.79% two-year discount mortgage up to 85% of the property’s value with no fee.

After the end of the two-year term each has a 1% discount for a further three years.

Sub 1% mortgage deal: how does it stack up?

Any sub 1% mortgage deal is bound to get some attention from borrowers hoping to lock into a low interest rate on their loan, according to Rachel Springall, finance expert at independent data site Moneyfacts.

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She said: “The Leeds BS discounted variable deal is likely to turn heads because not only will it provide borrowers with a free valuation, but it will also assist towards remortgage legal costs.

“One thing to keep in mind is the upfront fee which is £1,999, so the overall true cost must be considered, particularly as the low rate is only charged for the first two years. The rate reverts to 4.69% variable for three years thereafter.”

Springall added that fixed rate mortgages are still competitively priced and even if there aren’t other sub 1% mortgage deals, some lenders offer enough incentives to remortgage without having to pay an upfront fee.

As an alternative, Yorkshire Building Society has a deal priced at 1.71% for remortgage customers at 60% loan-to-value, with no product fee and offers a free valuation and free legal fees, which Springall said is a “fantastic bundle”.

But she said it may be cheaper for borrowers to find a lower rate deal with a smaller product fee.

“This is why borrowers will need to compare deals very carefully before they commit. There are lots of low fixed rate deals that carry high fees, so it’s worth watching out for these too.”

As an example, the Yorkshire BS deal would be £393 cheaper over two years because of the product fee the Leeds 0.99% deal charges. However, the 1.47% Leeds deal would be £544.80 cheaper than the Yorkshire deal (based on a £200,000 loan over 25 years).