The Chelsea Building Society says it is witnessing growth in the numbers of borrowers attracted to its track and fix mortgage.

It puts this down to uncertainty over the economy and interest rates continues.

“At a time when there’s so much uncertainty around interest rates amid the economic turmoil in Europe, the Chelsea’s innovative Tracker to Fixed mortgage offers borrowers the best of both worlds,” said Jemma Smith, Chelsea Building Society’s product manager.

Borrowers can receive from a tracker rate of 2.89% (BoE +2.39%) for the first two years of the product, and fix for the final three years of the term at a rate of 4.09%.

Smith added: “Offering this combination enables customers to save while the Base Rate is low and have the security of knowing their fixed rate in the future when interest rates are expected to climb.

“In addition to the standard Tracker to Fixed mortgage, the Chelsea is the only lender in the direct market to offer an offset alternative. The offset option is priced at just 0.20% higher than the standard product, so borrowers can use their savings to save even more on their monthly repayments or cut the length of their mortgage.”