Buckinghamshire Building Society has introduced a one-year discounted rate mortgage aimed at borrowers seeking short-term flexibility without early repayment charges.

The mutual has launched a new mortgage product priced at 5.89%, representing a 2.05% discount from its standard variable rate for the first 12 months.

The product carries a £2,500 fee and allows borrowers to repay or refinance at any point during the discounted period without incurring an early repayment charge.

Available for both purchase and remortgage applications, the mortgage can be used on houses and flats, including new-build properties, and is offered on both repayment and interest-only terms.

Loan sizes range from £100,000 to £500,000.

The society said the product is designed for borrowers who need a short-term lending solution while awaiting a future change in circumstances, such as the sale of another property, receipt of funds or a planned refinance.

Applications will continue to be manually underwritten and assessed on an individual basis. While the mortgage is intended to support short-term borrowing requirements, affordability will be assessed over the full mortgage term.

Claire Askham, head of mortgage sales at Buckinghamshire Building Society, said: “Not every borrower is looking for a long-term fixed rate commitment. We regularly speak to brokers whose clients need a shorter-term solution that gives them flexibility while they work towards a future change in circumstances.

“Whether that’s a planned refinance, a property sale, the release of funds, or another anticipated event, this product provides an option for borrowers who want access to short-term lending without being tied in by early repayment charges.

“By offering a one-year discounted rate across purchases and remortgages, we’re giving brokers another option to support clients whose needs may not fit a traditional mortgage term.”