Saffron For Intermediaries has launched a 1.95% three-year discount mortgage with no arrangement fee.
The dedicated broker channel of Saffron Building Society said the deal is designed to appeal to borrowers wanting to remortgage, and hopes it will revive the flagging remortgage market.
The new deal charges a discounted rate of 1.95% up to 60% LTV for three years, then reverts to Saffron's standard SVR, which is currently 5.39%.
There is no arrangement fee, but there is an early repayment charge worth 3% of the outstanding balance during the discount period.
The deal can be used both for remortgages or house purchases.
The maximum loan size is £1 million with overpayments of up to 10% per year allowed.
Saffron is also offering the same deal at higher LTVs and rates.
It will charge 2.29% to 70% LTV, 2.39% to 80% LTV and 3.29% to 90% LTV.
Anita Arch, head of mortgage sales, said: "This sub-2% discount deal with no arrangement fee is ideally suited to borrowers wanting to remortgage.
"The remortgage market has remained subdued for some time and this deal gives homeowners an easy way to switch to an extremely competitive rate with very low up-front costs."
Data published by the CML confirms that in February 2015 remortgage lending decreased month-on-month with 21,500 loans advanced.
That is down 16% on January and 14% down on February 2014.
Saffron does not use credit scoring and skilled underwriters individually assess each mortgage application.
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