Halifax, a part of Lloyds Banking Group, is offering a record low interest rate.

The former building society is giving homeowners the chance to fix their mortgage for five-years at 0.98%.

It's another sign of an ongoing 'mortgage war' on the high street as lenders compete in a booming housing market. The lender is undercutting rival Nationwide, the building society, which has just launched a 0.99pc deal over five years.

Halifax has also introduced a two-year fixed deal at 0.90%, compared to Nationwide's 0.91%.

The deals are available to borrowers remortgaging with a deposit of 40% and with a £1,499 fee.

A former building society, Halifax has experienced a turbulent recent history. Members voted for it to be 'demutalised' in 1997 and it was floated on the stock exchange to great fanfare.

In 2001, it was bought by the Bank of Scotland, forming the joint HBOS.

But in 2009 following the global banking crisis the previous year it was rescued by Lloyds bank.

The 0.98pc rate is the lowest five-year deal according to data analysts Moneyfacts, based on figures going back to 2007.