Central Trust has introduced a new one-year residential fixed rate product available on first and second charge mortgages.

The new option applies to first charges on unencumbered properties, as well as second charges, including across its consumer buy-to-let, family let and let-to-buy ranges.

The rate starts at 8.83% and is available up to 80% loan-to-value, with an early repayment charge of 1% applicable for the year. The maximum loan size is £250,000.

The lender says it wants to provide borrowers with a wider range of lending options in anticipation of improved market conditions and lower rates next year.

Central Trust commercial operations director Maeve Ward comments: “As consumers continue to navigate an economy of uncertainty, we hope that a one-year fixed rate product will provide certainty of payment.

“It also offers the freedom to leave for those who are more optimistic about further rate rises and the possibility of rates settling down over the next 12 months.

“It allows clients to borrow with confidence, restructuring their finances or enhancing their property with a view to remortgaging without penalty.”