Starting Thursday, the bank will offer 3.99% fixed rates on both its two-year and five-year products, the lowest such rates since November.

These market-leading deals require a substantial 40% deposit for homebuyers and 40% equity for homeowners. While available for both purchases and remortgages, they come with a £1,999 fee. A £200,000 mortgage over 25 years at 3.99% would cost £1,054 monthly.

Santander is also reducing the majority of its other fixed rates, including buy-to-let products, by up to 0.4 percentage points.This move follows recent rate reductions from other lenders, including NatWest.

Mortgage brokers have hailed the news as a positive development for borrowers and the housing market, driven by the Bank of England’s recent base rate cut to 4.5%.