Vernon Building Society has introduced a new three-year variable rate mortgage aimed at high-net-worth borrowers, offering large loan facilities of up to £1.8 million with increased repayment flexibility.

The new product is available for loans starting at £500,000 and features an initial rate of 4.99%, which includes a 2.86% discount off the mutual’s standard variable rate for the first three years. The mortgage is available on both capital and interest and interest-only terms, with a product fee of £999.

Borrowers taking out the new loan will be able to make capital repayments of up to 25% annually without penalty, providing a degree of flexibility not always available at this end of the market.

Brendan Crowshaw, head of mortgage & savings distribution at Vernon Building Society, said: “We’ve designed this new product for borrowers seeking larger borrowing options who value flexibility and competitive pricing, particularly in the current market.”

In a further update to its residential lending policy, the mutual confirmed that it is now able to consider income multiples of up to 5.5 times income, subject to affordability checks.

Crowshaw added: “Our approach to affordability offering multiples of 5.5x income reflects our ongoing commitment to supporting borrowers when it comes to affordability and realising their homeownership aspirations.”