High street bank Abbey has announced it is offering new customers an 18-month discount of one per cent on its reward mortgage rate.
This puts the rate at just 4.99 per cent, which means it is only 0.24 per cent above the Bank of England base rate.
After 18 months, the reward mortgage will increase by one per cent - base rate plus 1.24 per cent.
In addition to this the product gives one per cent cash back on the outstanding balance every two years, which the borrower can either use to reduce the term of the mortgage or spend on whatever they like.
"The discount on the Reward Mortgage is all about widening the choice that IFAs can present to their clients when tailoring a mortgage that suits their needs," said Abbey's Ambrose McGinn.
"The 18-month discount is ideal for people who need to save a bit in the early days of their mortgage when money is needed most."DeHavilland Information Services plc