Irish Permanent has reduced its one-year fixed-rate mortgage for new customers to 5 per cent APR. For anyone borrowing £100,000 over 20 years, monthly repayments are £632.10 per month over the first 12 months.

Other lenders are offering lower annual percentage rates on this type of mortgage. For example, TSB and Tusa offer lower rates of 4.7 per cent and 4.3 per cent APR respectively.