The lender has also announced that it has reduced rates by up to 15bps.

The new rate follows the launch of a limited edition two-year fix last week.

The rental market is straining under the pressure of high tenant demand which has seen rental costs spiral in recent years.

Tom Bill, head of UK residential research at Knight Frank, looks at the likely impact felt by borrowers coming off fixed-rate deals agreed some time ago on better terms.

The agreement follows the lender's announcement of a £250m bank funding line secured earlier this year.

The lender has also made further rate reductions on a selection of two and five-year fixed-rate products.

The gap between the monthly cost of homeownership and renting has shrunk to its lowest level since 2019.

From 1st April this year, councils can charge a premium of 100% of a property's council tax bill on homes that have been empty for 12 months.

Rates on five-year fixed-rate buy-to-let mortgages start at 5.35%

New products included in the suite include two and five-year fixed rates, available to both 65% and 75% LTV.