Norwich & Peterborough Building Society (N&P) has unveiled a new, ‘low fee’ three-year fixed rate mortgage.

It is priced at a rate of 2.49%.

The mortgage is available up to 60% LTV.

Borrowers can overpay up to 10% of their mortgage each year without penalty, up to an annual limit of £10,000.

There is a fee of £295 and comes with features such as free valuation, and either free legal fees for re-mortgages or £200 cashback for home buyers.

N&P product manager Richard Barker said: “N&P is increasingly becoming known for competitive deals with low fees and this newest three year product complements our two year and five year fixed rate mortgages at 60% LTV.

“The costs associated completing a mortgage can add up and, in the case of remortgaging in particular, may even deter homeowners from switching to a better deal which will save them money.”