Barclays and HSBC have ratcheted up the mortgage price war by launching all-time low rates across a number of products.
HSBC launches its lowest ever mortgage rate from today, a two-year discounted rate charging just 0.99% to 60% LTV.
From Tuesday, Barclays will offer its lowest ever rates across a number of mortgages, although only for a limited period.
This is the seventh consecutive rate reduction to Barclays' mortgage range.
HSBC's two-year discounted rate at 0.99% is a 2.95% discount off its standard variable rate.
The lender will continue to offer its two-year fixed-rate mortgage at 1.49%.
While both products are flying high in the best buy tables, they also carry a pricey £1,999 booking fee.
Peter Dockar, head of mortgages at HSBC, said: "We know how important a low monthly payment is for borrowers, and are committed to offering market leading rates.
"We're the only bank to offer a completely paperless mortgage application and are now leading the way by offering a mortgage of less than 1%.
"Customers can apply for these rates online, over the phone, in branch or through a broker thanks to our new partnership with Countrywide."
Barclays' best rates are also reserved for borrowers with a 40% deposit.
The deals include:
Three-year fixed rate at 2.29%.
Five-year fixed rate at 2.85%.
10-year fixed rate at 3.49%.
Customers can also get rates as low as 1.88% for a two-year fixed term at 60% LTV.
Barclays has reduced its five-year fixed rate from 2.89% to 2.75% for loans between £500,000 and £3 million at 65% LTV.
It has cut its Family Springboard mortgage by 80 basis points from 3.79% to 2.99%, on a three-year fixed rate.
Barclays is further helping first-time buyers and those with lower deposits with reduced rates on its 85% and 90% fixed-rate products.
Its two-year fix at 85% LTV is now 2.99% and its two-year 90% LTV is fixed at 3.85%.
Andy Gray, managing director of mortgages for Barclays, said: "Last week saw a number of factors come into play that helped to reduce the cost of funding for mortgage lenders.
"This gave us an opportunity to offer some of our lowest ever mortgage rates, continuing our commitment to give homebuyers and remortgagers access to never seen before' mortgage deals offered by Barclays.
"Swap rates, which impact funding costs for lenders, tend to be volatile meaning the mortgage rates available to consumers can change.
"First-time buyers and homeowners currently have a fantastic opportunity to take advantage of competitive low fixed rates over the short, medium and long term.
"To avoid missing out, we are encouraging customers to move quickly and consider how they could benefit from our new rates, available for a limited time."
Personal finance expert Andrew Hagger of Moneycomms.co.uk said brokers need to look beyond eye-catching headline rates such as HSBC's 0.99% deal.
"The hefty £1,999 product fee means it isn't such a great deal for those with smaller mortgages.
"There's too much emphasis on the rate, particularly when you realise that a £1,999 fee adds the equivalent of an extra £83.29 per month to your mortgage repayments.
"Some customers will be drawn in by the headline grabbing rate without realising there's a £2,000 sting in the tail."
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