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Conditions: The three-year tracker mortgage is set at Bank of England base rate plus 1.89 percentage points for loan-to-values up to 75 per cent.

There is a £995 application fee and the deal comes with free standard legal and basic valuation fees for remortgages.

Flexible features including the facility to make overpayments and underpayments and to take payment holidays for home purchases and remortgages.

Green features include an annual donation to Climate Care to help tackle global warming.

There is a 3 per cent early repayment charge applies for the initial tracker period.

The Co-operative Bank has also lowered the rate of its three-year fixed rate mortgage by 0.2 of a percentage point to 4.89 per cent. This mortgage also has no application fee.

Contact: 0800 0288288

Verdict:

Jason Witcombe, director for London-based Evolve Financial Planning, said: "This looks like a decent rate. A £995 application fee might put off people with small mortgages but for larger cases it could work well.

"My only concern is that, like many lenders, when a decent rate is offered, they get swamped with business and cannot always cope administratively."

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