First direct has launched what it claims is a market leading offset tracker mortgage.
It tracks the bank of England base rate plus 2.48% for the life of the loan.
The mortgage is currently priced at 2.98% (3.2%APR) and is capped at 4.99% until 2012.
The new mortgage has a maximum loan to value of 75% and an arrangement fee of £1,499.
Jimmy Kelly, mortgage manager for first direct, said: &quotWe wanted customers to be able to take advantage of the current low base rate and offer the security of knowing that that their mortgage rate won’t go above 4.99% for the next three years.
&quotIt’s great to be able to offer this unique mortgage at the moment with the added benefits of being able to offset.&quot