Charcol has launched a two-year base rate tracker at 0.51% below Bank of England base rate.
The deal has a current pay rate of 3.99% and is available up to 90% LTV and reverts to base rate plus 1.25% for the remaining term, although as penalties only apply in the first two years borrowers can also switch to an alternative deal after this period. Interest is charged daily.
Ray Boulger, senior technical manager at Charcol, says: “This deal is by far the cheapest discount or tracker mortgage currently available. It is available up to 90% LTV, whereas the next cheapest discount or tracker is only available up to 60% LTV.
“Even those borrowers reluctant to opt for a discount or tracker mortgage should consider this deal, as Bank base rate would have to rise by over 1% to over 5.5% before the pay rate would increase to above the level of today's cheapest two-year fixed rate.”