First Mortgage is launching a three-year fixed-rate mortgage at 3.99 per cent.
The lender says it is launching the fixed-rate because it believes interest rates are unlikely to fall significantly lower it an ideal time for borrowers to take out fixed rate mortgages.
The three-year mortgage which is fixed until June 30 2002 is available at 90 per cent loan to value and has no compulsory insurances.
The loan has a £50 processing fee, a £345 completion fee and a special fees package for remortgages.
IFAs will receive a procuration fee of £250 on completion.