Jersey Home Loans, a subsidiary of the Kent Reliance Building Society, are launching the offer after the recent rise in the UK base rate to five per cent.
The mortgage is available for up to 90% of the value of the loan and can be taken up as a remortgage.
The terms of the mortgage give people the flexibility to make overpayments of up to £500 per month without penalty and is portable for people wanting to move to a new property.
