Legal & General is launching a two-year capped-rate version of its Flexible Reserve mortgage.
The rate is capped at 6.05 per cent for two years and allows borrowers to make over and under payments and take payment holidays without penalty. It also pays a £300 cashback.
If the entire mortgage is redeemed within the first two year a three month penalty is applicable. There are no penalties after the end of the capped rate period.