Newcastle launches 10-year fixed product

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&#39 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.