The Leeds Building Society has launched a new two-year base rate tracker at 3.29%.

It tracks the base rate plus 2.79% until 31st October 2014 and is available up to 75% loan to value (LTV).

There is no higher lending charge and 10% capital repayments are allowed each year without penalty.

It comes with a £199 booking fee and a £800 completion fee.

There are also tapered early repayment charges of 3% of the amount redeemed in year one and 2% in year two.

“This new mortgage offers very good value both immediately and going forward,’ said Kim Rebecchi, sales and marketing director at Leeds Building Society.

“With many market commentators predicting that Bank of England Base Rate will remain low for some time, this is an excellent rate.

“Furthermore, unlike some other trackers in the market, this mortgage does not have a collar. Therefore, if Bank of England Base Rate falls, borrowers will actually benefit immediately.”

She added: “Borrowers also have some flexibility as we allow 10% capital repayments each year, without penalty, and there is no is no higher lending charge.”