The original Seat Altea was a watershed for MPVs. Never before had one offered as much style and driving dynamics.

And those looking for even more space didn't have to wait long for the lengthier Altea XL.

Now Seat has added a third model to its mid-sized MPV range – the Altea XL-based Freetrack 4 – and equipped it with a four-wheel drive system, raised ride height and rugged plastic bumpers.

It follows hot on the heels of the excellent Skoda Octavia Scout we drove a couple of months ago, and uses the same intelligent Haldex clutch which can send up to 50 per cent of the engine's power to the rear wheels when the going gets tough.

Our route for the day took us through the Berkshire countryside into Surrey for a quick foray on a mild off-road course.

On the way to and from the muddy course, the Freetrack displayed the same excellent driving dynamics that set the original out from the MPV pack.

Lots of go

The steering is responsive and the ride is firm – but rarely crashy over rutted roads. And this sporty drive is complemented by a couple of pokey engines – the 197bhp, 2-litre turbocharged petrol engine from the Golf GTi and a 168bhp diesel engine of the same size.

Like the other cars in the VW Group we've sampled these engines in, both were very refined – particularly the petrol unit – and are mated to slick six-speed manual gearboxes.

Seat say the diesel option will make up the bulk of sales – around 70 per cent – and when the running costs are compared it's easy to see why. The diesel will cover an average of 41.5mpg; a massive 11.4mpg more than the petrol.

And there's not a huge difference between the engines in the performance stakes – the petrol's 0-62mph time of 7.5 seconds is only slightly less than the diesel's 8.7, while there's only a difference of 6mph at the top end; both manage around 130mph.

Beefy looks

The car's exterior blends Seat's sporty styling with the kind of huge rubber bumpers Audi and Volvo made famous with the Allroad and XC70. It has to be said, the smaller estates carry off the look better than the Seat which wears its front bumper like a huge cartoon character's beard.

But it came into its own when we took the car onto an off-road course which took the Altea near its limits. Even though the course asked more of the Freetrack than most will ever encounter, there's an optional metal sump guard available to protect the engine from sharp rocks to replace the standard plastic part.

And blasting up and down steep muddy and rocky slopes, the Altea became massive fun. The Haldex four-wheel drive arrangement worked seamlessly in the background, shifting power from the front wheels under normal driving to all corners when grip is lost.

This, coupled with 40mm extra ground clearance thanks to its jacked-up suspension, means the Freetrack can approach and climb angles of up to 17.6 degrees and descend angles of nearly 23 degrees without scraping the bodywork.

Despite its steering and suspension being tuned primarily for on-road use, there's very little of the fierce steering wheel kickback encountered when the car hits a rut or jarring ride over lumpy surfaces. It's an excellent compromise between on and off-road abilities.

Sporty cabin

On first glance, the brown and black cabin belies the Freetrack's sporty verve, but slipping in to the supportive – almost bucket-like – seats and gripping the huge gearknob, it's clear the racy theme continues.

The brown and black finish is an acquired taste, but it suited the muddy pretensions of the Freetrack.

Like the standard cars, there's plenty of storage space around the cabin, including a trio of roof-mounted boxes, and a capacious boot offering up to 1,562 litres.

Only one trim level is available - and it comes loaded with kit, including a screen which folds down from the roof allowing rear seat passengers to connect a DVD player or games console; which is an unusual feature in a £20k car.

It also packs rear side window blinds, tables in the seat backs, dual-zone climate control, rear park sensors, rain sensing wipers, front and rear electric windows, heated and electrically-adjustable wing mirrors, cruise control and pre-installed towbar electrics.

It has also scored a maximum five stars in the EuroNCAP crash test programme, thanks in no small part to eight airbags, ESP with brake assist, ABS, tyre pressure monitoring and ISOFIX child seat mounting brackets.

On the face of it, the Altea Freetrack is a car at odds with itself; equal parts hot hatch, MPV and soft-roader.

But that doesn't make it a jack of all trades and a master of none. In fact, it's a sensible alternative to many of the SUVs currently available.

Unlike them, it doesn't have its on-road abilities compromised by some rarely-used off-road equipment like soft suspension and slow steering, and is well suited to the kind of off-road usage owners are more likely to do – crossing the odd field and towing a horse box or caravan. And the family and luggage can come too.

For that, the Altea Freetrack 4 is unique in the market.