Leeds & Holbeck Building Society is launching a three year fixed rate loan on July 8.
The rate is fixed at 5.75 per cent until September 1, 2002, up to 95 per cent loan to value.
The rate has no extended tie ins after the fixed period. But if redeemed during the fixed term, a penalty of six months' interest at standard variable rate is payable.
The loan has an arrangement fee of £295.
The society's 'Homeover Insurance' is compulsory otherwise 0.24 per cent is added to the rate.