Abbey National has launched a flexible mortgage aimed at its existing borrowers.
The mortgage offers a variable interest rate of 6.3 per cent which will also track the base rate.
The flexible loan is only available to existing borrowers who have held their loan for three years or more, have a mortgage in excess of £40,000 and a loan to value ratio of 75 per cent or less.
Customers can apply for the loan from July 28. There is a £150 arrangement fee.