Kensington is now offering capped tracker mortgages.

The lender says it has launched its first two and three-year capped trackers following feedback from intermediaries and concern over possible interest rate rises.

Initial rates for 80% LTV two-year capped tracker deals are 4.09% with a 5.74% cap in the event of rates rising, falling to an initial rate of 3.34% for 75% LTV and 3.14% for 60% LTV with caps at 4.99% and 4.79% respectively.

The mortgages track LIBOR.

Charles Morley, head of sales at Kensington, said: “The launch into capped trackers addresses growing concerns about rate rises and delivers a combination of competitive rates and peace of mind for borrowers.