Bank of Scotland has reduced its variable rate mortgage to 3.69 per cent (3.8 per cent APR) from 3.9 per cent (4.1 per cent APR). This makes them lower than the 3.85 per cent (3.9 per cent APR) offered by EBS, traditionally the cheapest lender. Bank of Scotland has also promised customers that the bank's rate will never be more than 1.5 per cent above the European Central Bank rate.

In an additional move, those choosing to remortgage with Bank of Scotland will be offered £500 towards their legal fees.