Mortgage rates have reached an all-time low with the launch of a new 0.79% deal, the lowest ever recorded in Britain.

Since May of this year, and for the first time in almost four years, homebuyers have been offered mortgages with interest rates below 1%. There are now 140 deals available with an interest rate of less than 1%, as lenders make the most of their ability to borrow money cheaply from the Bank of England with the base rate at 0.1%, financial analysts Moneyfacts said.

Platform, part of the Co-operative Bank, has undercut its competitors, having launched a two-year fixed-rate loan at 0.79%. Borrowers must have a 40% deposit and pay a £1,499 arrangement fee to take out the Platform loan.