Leeds Building society has launched a direct-only two-year discount mortgage at 2.54 per cent.
The product is available at a loan-to-value of up to 70 per cent.
Customers are allowed to make 10 per cent capital repayments each year and there is no higher lending charge.
There is a £199 booking fee and a £2,800 completion fee for loans up to £500,000 or 1 per cent for loans over £500,000. These charge, however, can be added to the loan.
LBS general manager for marketing and business development Martin Richardson says: “We expect this impressive new product to be popular due to the combination of both a low interest rate and a flat completion fee.
“The very low interest rate will appeal to customers with larger loan sizes due to the benefit it will have on their monthly mortgage payments. Furthermore, the flat completion fee can be added to the loan amount.”