New discount cap

The deal is funded by Portman Building Society and is available up to 95 per cent loan to value. There are no redemption penalties after 1 April 2005 and borrowers can repay up to ten per cent in this period without penalty.

David Bitner, mortgage technical manager at the MarketPlace, said: "This is an ideal product for the current economic environment following Thursday’s decision by the Bank of England to maintain the base rate at four per cent. It allows customers to take advantage of the lower variable rates, instead of opting for a higher priced fixed, but still with the rate protection in mind provided by the cap."