The discounted rate is 3.39 per cent for loans up to 85 per cent loan to value. After the discounted period ends, the rate reverts to 5.35 per cent.
The deal offers a free standard valuation. Early repayment charges apply throughout the three-year period.
Ashley Pearson, business development manager at The Loughborough, said: “I like to think we offer sound mortgage solutions for people with a range of different circumstances. Many borrowers need a little boost to their cash flow at the moment and this new product can be used for both purchase and remortgage.”
A flurry of cashback deals have hit the market since the start of the year.
In January, Barclays standardised its cashback deal across the bank’s residential remortgage range, offering £250.
A month later, Santander added £250 cashback to selected two and five-year fixed rates for loan to values from 75 per cent to 90 per cent.
