Saffron For Intermediaries has launched a 1.95% three-year discount mortgage with no arrangement fee.

It says the deal is designed to appeal to borrowers wanting to remortgage, although it is also averrable for house purchase.

The maximum loan to value is 60% and there is no arrangement fee.

There is a 3% Early Repayment Charge during the discount period and overpayments of up to 10% per year are allowed.

The maximum loan size is £1 million.

Saffron is also offering the same deal at higher LTVs and rates: 2.29% to 70% LTV; 2.39% to 80% LTV; and 3.29% to 90% LTV.

Anita Arch, head of mortgage sales, said: “This sub-2% discount deal with no arrangement fee is ideally suited to borrowers wanting to remortgage. The remortgage market has remained subdued for some time and this deal gives homeowners an easy way to switch to an extremely competitive rate with very low up-front costs.”