The Staffordshire Building Society is offering a new five per cent cashback mortgage this month which it says is blow for mutuals against plcs.
The cashback is available on advances of 90 per cent for both purchase and remortgage and has no application or arrangement fee.
Staffordshire's standard variable rate is 8.5 per cent almost half a per cent below the current standard.
Staffordshire chief executive Keith Page says: "The five per cent cashback mortgage is an aggressively priced product and will once again step up the competition in the mutuality v plc price war. As a mutual society with no dividends to pay to external shareholders we are able to use our advantage to once again benefit our customers."