Teachers Building Society has launched a new one-year variable rate mortgage available from 3.99%.

The building society says the new product aims to help borrowers face the ‘rate shock’ when their existing mortgage deal comes to an end.

The one-year variable rate product is available up to 80% loan-to-value (LTV) and is available at 3.99% to teachers and at 4.19% to non-teachers looking to remortgage to the society.

An early repayment charge (ERC) of 3% applies to teacher and non-teacher applicants.

It will be open to borrowers who are already on the housing ladder and whose current deal is ending.

Teachers Building Society commercial director David Leek says: “Many homeowners looking for a new mortgage are currently facing a choice between accepting a longer-term deal that’s more expensive than their previous one or waiting on a lender’s SVR.”

“Our new shorter-term variable rate mortgage draws on our roots of doing things differently and has been designed to offer an alternative option.”

“Supporting teachers to get on the housing ladder has been our core purpose since forming in the 1960s. Part of that support means helping them in more challenging financial circumstances, like the economic situation we’re now facing.”