Santander for Intermediaries is to cut the rate of its Flexible Offset mortgage tomorrow.

The reduction of 0.5 percentage point means the new rate is 3.09%.

There is fee of £495.

The Flexible Offset mortgage is a guaranteed tracker rate for life which allows the customer to use their savings to offset their mortgage balance.

It comes with the ability to overpay or take a mortgage payment holiday, and pay off the mortgage balance without incurring an ERC, as well as the option to port the mortgage to another property.