Woolwich has launched a 10-year fixed rate to help boost the long term mortgage market.
The lender is offering the deal at 5.29% for 10 years to enhance the availability of competitive long term mortgages.
The mortgage reverts to tracker at base plus 0.95% after the initial fixed rate period and the arrangement fee is £995, which can be added to the loan.
The max LTV is 60% and borrowers can overpay up to 5% each year without any charges during the fixed rate period.
There is a 6% early repayment charge during the fixed rate period. The deal is available through brokers or direct from Barclays.
Andy Gray, head of mortgages for the Woolwich, says: “The mortgage market is hugely uncertain at the moment and lenders are continually re-pricing products.
“However, the long term swap market has steadied at lower levels and we have been able to put together a long term product at an historically very competitive rate.”
He says that with more than 1.7 million coming off fixed rates this year, and several hundred thousand of these on rates longer than five years, Woolwich expects many consumers will want to fix long term to avoid short term volatility.
Gray adds: “We believe this will be the best priced long term product in the market place. With the government looking to encourage longer term fixes, and with consumers looking to avoid short term volatility, we expect this product to be popular with borrowers.
“If nothing else it will certainly show whether consumers have an appetite to fix over the longer term, as the rate is hugely competitive.”