Woolwich the launched what it claims to be the first-ever track and cap mortgage to protect against rising interest rates.
The lender’s lifetime tracker at base plus 0.23 per cent has the optional protection of a cap at 5.99 per cent for the first two years of the mortgage.
This comes as many commentators predict the base rate could go on rising from its current 5.25 per cent position.
Woolwich head of mortgages Andy Gray says: “Most traditional capped rate mortgages are not linked to a base rate tracker, so it can be hard to get any real benefits when rates start to fall. With this you still get all the benefits of a base rate tracker in terms of flexibility but with the benefit of protection for the first two years after completion.
“Overall we believe this is the best mortgage available in the market. The lowest long term rate, a capped upper rate if you want, and at the same time flexibility to overpay, pay off the mortgage early, move house and re-mortgage.”