Funded by Bristol & West, the mortgage tracks the Bank base rate (BBR) plus 0.5 per cent for 15 months and then at BBR plus 1.2 per cent for the life of the loan.
The maximum loan is 90 per cent loan to value, and the product allows overpayments, underpayments, payment breaks and a drawdown facility. There are no redemption penalties for a partial redemption, although a charge of £100 will be charged for a full redemption.
Richard Stokes, product manager at TMO, said: "Last year TMO saw a 50 per cent increase in business on redemption-free mortgage products. The majority of these products also carried substantial assistance with legal costs and valuation fees. We have designed a product base on these popular features to ensure that intermediaries can offer the products that people want."
