Lloyds TSB has launched a new ‘market leading’ fixed rate mortgage at 2.94 per cent.

The new product is a two year fixed rate mortgage, available for house purchase and remortgage, with a loan to value of up to 70 per cent and a fee of £1,895.

First time buyers can also apply for the mortgage, providing they have the 30 per cent deposit.

As a sign of the times, which have brought record low interest rates, the new Lloyds mortgage is much cheaper than the average deal three years ago. In 2007, the average fixed rate mortgage cost 5.70 per cent, but they were the most popular mortgage product on the market.

Research from Lloyds shows that since their launch in 1989, fixed rate mortgages hit their peak in 1990, when they reached an average 13.85 per cent,

The average fixed rate from the first half of this year was 4.62 per cent, accounting for 46 per cent of all mortgage products, according to Lloyds.

Stephen Noakes, commercial director of mortgages at Lloyds TSB comments, “Twenty years on from the peak of fixed rate products, we’re launching a new, market leading rate. Whether you’re looking to buy a new home or remortgage to the stability of a fixed deal, this provides certainty of an attractive rate for two years”.

© Fair Investment Company Ltd

The new Lloyds mortgage is only available in branches, see below for some of the other latest mortgage deals: