Royal & SunAlliance is linking up with Birmingham Midshires to offer a capped rate mortgage.
The mortgage, which is available for up to 95 per cent loan to value, is capped at 5.79 per cent until October 31 2001. The minimum loan is £35,000 and the maximum is £500,000.
R&SA is offering £300 cashback and a refund of valuation fees on completion.
R&SA mortgage products are only available to IFAs through its mortgage panel, but registration is free.
Royal & Sun Alliance market manager for mortgages Mark Evans says: "This is a market leading capped rate and is almost 3 per cent below the standard variable, with the added incentive of a refund of valuation and cashback."
There is a £295 arrangement fee to borrowers. There is a £200 procuration fee for IFAs.