Following a fall in swap rates, the Halifax and Yorkshire Building Society have announced new mortgage products. This follows similar moves by Nationwide, Cheltenham & Gloucester, Bank of Scotland and The Woolwich.

Halifax are cutting the rate in 16 of it's products, and in it's core range are discounting three and five year fixes by between 0.1% and 0.18%. The biggest rate drop sees 0.3% shaved off for customers borrowing over £500k and desiring a fixed rate.

Today, Yorkshire Building Society also launched a new product range, including a 4.99 per cent two year fixed rate remortgage. This product, however, comes with a chunky 3% arrangement fee.

For remortgages, the Yorkshire also offers a fee free deal. However, the rate is higher at 6.79 per cent.

Tom Girling, product manager for mortgages at Yorkshire Building Society, said of the launch:

"In the present climate with soaring petrol, utility and food costs, a number of borrowers are looking for the lowest possible monthly mortgage payments to help them survive financially. The new 4.99 per cent two year fixed rate deal is the lowest rate currently available and, whilst the fee is inevitably high, this can be added to the loan which keeps the pay rate down.

"We understand that this mortgage will not suit all borrowers, but it is offered as an option for those who may be finding that their monthly income is stretched to the limit. For borrowers who can afford a little more each month, we have mortgage options with lower fees and no fee products,"