The product will be set at 60% LTV and structured as a 2-year discount.

When accessing the product through capital repayment only, the remortgage will include a £999 fee and will require a minimum loan of £150,000.

Carolyn Thornley-Yates, head of mortgage proposition and distribution at Hinckley & Rugby, told Mortgage Introducer: “We have experienced a sharp increase in demand for variable rate products of late, possibly boosted by some economists’ predictions that base rate will remain at the current level or lower until 2025.

“Therefore, we’ve designed a product to cater for those borrowers who would like to take their rate below 1% in this environment.”