Paradigm Mortgage Service has launched a lifetime offset product with the Hinckley & Rugby Building Society.

The mortgage has a rate of 3.49% and will be the first lifetime discount product available at 85% loan-to-value.

It is available to both appointed representatives of the mortgage services proposition and its directly authorised members, and carries a procuration fee of 0.37% up to a maximum of £1500.

The application fee for borrowers is £295 and the product carries a completion fee of £695 which can be added to the mortgage.

The lifetime discount also comes with free valuation, free legals for remortgages where there is no transfer of equity involved and no early repayment charges. It is not available on new build houses and flats.

Bob Hunt, chief executive of Paradigm Mortgage Services, said: “We constantly endeavour to offer our members not only the most competitive rates in the market, but products that are not available elsewhere and this lifetime offset exclusive from the Hinckley & Rugby ticks both those boxes.

“As mortgage lending activity starts to awake from its recent hibernation, brokers are keen to have products in their arsenal that will differentiate them from the competition and this mortgage will allow them to do that. There are precious few products in this niche that carry LTVs up to this level, so we would expect take-up to be keen.

“Another interesting point about this offering is that it is further proof that it is building societies that really seem to be leading the charge at the moment in terms of rates and product innovation. While the majority of banks have kept their cards close to their chests, mutuals have really contributed to the recovery in lending by showing an appetite in areas other lenders have shied away from.”