The product comes with a £1,995 fee and is available for purchases and remortgages to 60% LTV.

Kris Brewster, Skipton’s head of products, said: “This is certainly an historic moment for Skipton Building Society, as the first time we have offered fixed mortgages below 1%. By offering great value products, we are emphasising our commitment to help new and existing customers.

“Skipton continues to add value to its residential mortgage range with these new two and five year fixed term products. [Our] clear message continues to be that we want to offer new and existing customers the most competitive rates and the best levels of service to enable them to complete their purchase or remortgage in the quickest possible timescale.

“This compliments our existing mortgage range, which aims to offer attractive deals to suit a range of circumstances.”

Earlier this year Yorkshire Building Society launched its lowest ever fixed-rate product – a 0.99% two-year mortgage, while in May, Tesco launched the lowest variable tracker rate ever recorded by data site Moneyfacts at 0.98%.