Capped rates are back

Available from Friday, the capped rate was designed for customers looking for a variable rate but also protection against potential future rate rises. The new five-year capped-rate is available up to 85% LTV - the only five-year product of its kind on the market.

The new variable range includes a three-year tracker with a rate of 2.49% and an arrangement fee of £999.

Commenting, John Hughes, business leader for retail products, said: "These competitively priced variable rate mortgages offer customers an opportunity to take advantage of the current low interest rate environment and follow on from the recent launch of our best buy fixed rate products.

"The five-year capped product is innovative in the current mortgage market, offering customers the best of both worlds - a low current rate and also the reassurance that their payments won't go above a certain rate for the next five years.”