Newcastle has launched a 10-year fixed product with a rate of 5.99% until February 27 2014.
The product offers borrowers a bi-annual opportunity to redeem their mortgage without penalty. Customers can redeem for free in December 2005 and then every two years until 2013.
Robert Hollinshead, chief executive of Newcastle, says: “Although there is much speculation at present about forthcoming interest rate rises, it is impossible to tell where the base rate will be in 10 years' time. Our mortgage is designed specifically for this situation to give people the best of both worlds – the security of a fixed rate as well as a get-out clause.”
The mortgage has a completion fee from £345 and interest is calculated on a daily basis.