The product gives a current pay rate of 5.39 per cent, 6.3 per cent APR, with a cap of 5.89 per cent.
The deal reverts to 6.75 per cent for term with an overall cost for comparison of 6.3 per cent APR. The maximum LTV is 90 per cent; free valuation is available as well as free legals on remortgages. The arrangement fee stands at £495, while interest is calculated daily.
Ray Boulger, senior technical manager at Charcol, commented: "This product provides the welcome combination of a competitive tracker and a competitive cap, making it not only the market leading five-year cap but also excellent value as an alternative to a five year fixed rate.
"Should Base Rate rise during the next five years, the maximum increase borrowers will suffer is only 0.5 per cent. This mortgage
offers the full downside benefit if Bank Base Rate falls from the current level, with little upside risk if it rises."
