First Active is adding a two-year capped rate from 5.99 per cent with no redemption penalties to its Current Account Mortgage.
The flexible loan specialist has a standard variable rate of 6.24 per cent but says it is offering the cap in a bid to increase sales amid fierce competition.
The mortgage will be available to IFAs through third-party packagers, including Current Account Mortgages, Pink Home Loans, DBS Mort gage Services, All Types of Mortgages, AMF London, Mortgage Support Services and Scotlife Home Loans.
The Capped Account Mortgage offers 5.99 per cent up to 75 per cent loan to value, 6.49 per cent up to 85 per cent LTV and 6.99 per cent up to 95 per cent LTV.
It has no redemption penalties or mortgage indemnity guarantee fees.
Borrowers are provided with a chequebook and cashcard to bank through their mortgage.
Managing director Tony Ward says: “We offer the ideal combination for a flexible mortgage with full banking facilities for access to overpayments, no Mig or redemption penalties, interest calcu lated daily and a competitive rate.”
IFAs receive a procuration fee of £100 on completion.