The initial rate is a 4 per cent discount for three months, followed by a 1.25 per cent discount for 33 months from the Bank base rate plus 1.98 per cent.
Stuart Johnson, sales director of TMO, said: "With a significant discount in the first few months of this mortgage, it gives first-time buyers the opportunity to ease into home ownership. For other borrowers looking to move home or remortgage, any cost saving is of benefit - it is therefore useful to have this period where the mortgage repayments are reduced, followed by a longer term but smaller, discount. With interest calculated daily, no overhanging redemption penalties and a self-certification option this mortgage suits a wide range of borrowers."
The maximum loan to value is 85 per cent up to £300,000 and 75 per cent up to £500,000. A redemption penalty of 5 per cent of the amount redeemed during the discount period applies. An introducer fee of 0.5 per cent of the loan is payable (minimum payment £350).
