Woolwich Direct is launching a tracker mortgage for the buy-to-let market.
The loan is aimed at borrowers looking to purchase or remortgage a residential investment property.
The loan will track Woolwich's base rate plus 1.6 per cent. The bank's current base rate is 6.6 per cent.
Loans will be available up to 75 per cent loan to value subject to a minimum of £25,000 and an overall maximum of £1m.
There is an application fee of £295.
There is an early redemption penalty of six months' interest in the first three years.