Lender GMAC-RFC has launched a new two year fixed mortgage with an interest rate of just 3.55 per cent on loans up to 90 per cent loan to value.
On mortgages up to 95 per cent LTV, the interest rate is set at 3.75 per cent.
Minimum loan is £25,001 while the maximum is £750,000 under the new arrangements.
The rate is fixed until May 1, 2005 on the product which is available for purchase or remortgaging.
GMAC-RFC head of product development Peter Stimson says: “With today's economic uncertainty, customers are looking for both flexibility and value for money with their mortgages. Two-year fixed rate deals continue to be in demand from borrowers who are looking for a combination of an attractive rate and security of payment, so they can manage their outgoings and budget repayments.”