Private Label has launched a tracker mortgage offering borrowers £500 cashback.
For full status borrowers the rate on the Cashback Tracker mortgage is the equivalent of the Bank of England Base Rate plus 0.85 per cent up to 95 per cent loan to value.
Self certification borrowers will pay the base rate plus an additional 1.5 per cent up to 85 per cent LTV.
There are no penalties for overpayments or capital repayments, but if the loan is redeemed in the first five years the cashback is repayable.
The packager is also offering a tracker mortgage for loans up to 100 per cent LTV. The rate is calculated as the base rate plus 1.75 per cent. But this rate is discounted by 1.26 per cent during the first year.
Both rates offer an introducer's fee of 0.25 per cent of the loan.