Chelsea Building Society has launched a 2-year tracker with no early repayment charges.
The deal, at 1.15%, is the lowest variable tracker rate on the market, available to both homebuyers and those looking to remortgage with a 35% deposit.
The product comes with a £995 fee and is designed to provide homeowners with flexibility to exit their mortgage early without paying an ERC.
Richard Barker, mortgage product manager at Chelsea, said: “Our new tracker doesn’t tie borrowers into their mortgage.
“As it is the lowest variable rate tracker mortgage currently available on the market it will appeal to customers who are keeping an eye on interest rates.”
Rachel Springall, finance expert from Moneyfacts, added: “The deal even surpasses offers from alternative lenders that require an additional 5% deposit.”