As well as a three-year reverse stepped tracker, L&G is also offering a two-year fixed rate, both available for house purchase and remortgage.
The reverse stepped tracker begins at base rate plus 3.49 per cent in year one, dropping to base rate plus 2.99 per cent in year two and base rate plus 1.49 per cent in year three.
L&G head of mortgage products Martyn Smith says: “A reverse stepped tracker is not a mortgage product that you will see every day, but an unusual mortgage market calls for innovative solutions. It’s a product which helps protect the borrower against future rate increases.
“We think that it will be very popular and we will be managing the tranche carefully. We’re really pleased to have worked with Accord to bring something so ground-breaking to market.”
Accord strategic development director Cate Hillis says: “The reverse stepped tracker cushions borrowers against future base rate rises and provides intermediaries with greater product choice when reviewing the best option for their client.”