Kensington Mortgage Company has launched a fixed-rate mortgage of 8.99 per cent aimed at single parent families, divorcees and those approaching retirement.
The rate is fixed until February 2000.
The lender says it will also benefit contract workers, the self-employed and other workers who don't meet the criteria of traditional high street lenders.
Kensington has also launched a variable rate mortgage initially set at 8.25 per cent.
The key benefits of both products are no MIG payments, no redemption fee charged after the first three years and no distinction made between salaried and self employment.
Both products are available through IFAs and have a completion fee of £295.