Yorkshire Building Society is offering what it claims is the only tracker mortgage guaranteeing from the outset a future fixed-rate option set at 4.99 per cent.
The Your Choice three-year tracker has a rate of 0.25 above the Bank of England base rate until November 2005, giving a current rate of 4.25 per cent.
But Yorkshire says to give borrowers the security of controlling future payments, they can transfer into a fixed rate of 4.99 per cent at any time during the three-year period, regardless of what happens to the BoE base.
The loan has a maximum loan to value of 95 per cent and is flexible, offering daily interest calculations, overpayments, underpayments and payment holidays.
The average procuration fee available through Yorkshire's partnerships with mortgage clubs and networks is 0.3 per cent of the loan.
General manager (marketing) Iain Cornish says: “Your Choice is a unique product. Borrowers benefit while interest rates are low but they have the added security of a very competitively priced fixedrate cushion.”
Wriglesworth Consultancy managing director John Wriglesworth says: “It is innovative and attractive and is probably unique as borrowers have the flexibility to choose between a tracker and a fixed rate.”