The premium for offsetting just disappeared

The product comes with a large fee of £2,499, but for mortgages over £300,000 it is the current market leader, even without the ability to offset.

The interest rate for the first two-years is set at 4.24 per cent and the overall cost for comparison is 5.6 per cent APR.

Ray Boulger, senior technical manager at John Charcol, said: “When offsetting was introduced, the premium for such a facility was well over half a per cent on your rate, making it very much the privilege of those with a large savings account. With this product, the gap between rates has vanished and for large loans you are receiving the offset facility as a freebie.

“Even with a larger than average fee of £2,499, the mortgage is still tremendous value for those with large loans and is the best in the market for deals above £300,000. With more and more mortgages of this size, these types of deal will become increasingly popular as people look to make their money work for them.”

Other key features of the products include a maximum loan to value (LTV of 85 per cent up to £2 million and 75 per cent up to £5 million and an exclusive fee of £75.

Boulger said: “There is an early repayment charge within the term of the discounted period, but borrowers can make unlimited part repayments and unlimited payments can be made into either the savings or current account linked to the mortgage.”