The Marketplace at Bradford & Bingley is offering a two-year stepped discount mortgage with an initial rate of 3.99 per cent.
The deal is funded by Woolwich and is aimed at remortgagers, with a discount of 1.8 per cent in the first year off the current variable rate of 5.79 per cent. The discount reduces to 1.2 per cent in the second year, giving a current rate of 4.59 per cent.
The loan is available up to 90 per cent loan to value and is free from mortgage guarantee charges and legal fees. There is no arrangement fee, valuation is free and there is a £500 cashback. Borrowers can repay up to 25 per cent of the loan each year without penalty.
Redemption fees are six months' interest at the standard variable rate plus £1,000 during the discount period. Minimum loan is £50,000.
Head of product operations David Bitner says: “With interest rates at historically low levels, remortgaging is proving to be very popular at the moment. This product has a range of features which will attract the keen-eyed remortgager. A free valuation, free legals, no arrangement fee and a £500 cashback all combine to offer a no-cost or low-cost remortgage.”