The product, funded by BM Solutions, has a 5.89% initial rate, fixed for two years, with a 1% cashback and redemption penalties only in the fixed-rate period.
David Bitner, mortgage technical manager for The MarketPlace at Bradford & Bingley, said: "This is a very attractive deal for borrowers who, perhaps because of divorce or losing their job, have experienced some credit problems in the past. [These] have historically been offered a short-term fixed rate for about a year and then been locked into a high rate for a further 2 years with very high redemption penalties.”
