Chelsea Building Society has launched the UK's lowest rate mortgage charging less than 1.00%.
The deal is a two-year base rate tracker charging 0.98% up to 65% LTV, with a £1,545 fee.
It tracks the Bank plus another 0.48%, and Moneyfacts has said it is the lowest rate currently on sale.
This comes less than two months after HSBC launched the UK's first ever sub-2% five-year fixed rate.
The Chelsea is a subsidiary of the Yorkshire Building Society Group, which launched its lowest-ever fixed rate mortgage just one week ago.
This charges 1.07% for two years and is available with a £1,369 product fee to customers with a 35% deposit.
Rachel Springall, spokesperson for Moneyfacts, said: "This new two-year tracker deal priced at 0.98% is the lowest mortgage on sale today and will appeal to borrowers looking to reduce their monthly mortgage payments with a trusted brand.
"Breaking the 1.00% barrier is sure to grab the attention of borrowers looking for a competitive rate on their mortgage."
Mike Regnier, Chelseay's chief commercial officer, said: "We like to offer choice and some of our members have continued to opt for variable rate mortgages.
"We are therefore very proud to offer this very competitive base rate tracker mortgage.
"A tracker rate can mean mortgage repayments are smaller when rates are low but borrowers should be mindful that any future rises in the Bank of England base rate will increase their mortgage repayments so they should consider whether this is appropriate for them."
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