Newcastle is offering a mortgage fixed at 5.99% until August 30 2014 with an annual penalty-free option to redeem. The recent interest rate rises have only increased speculation that they may continue to do so over the next year. This long-term fixed rate product provides people with security against potential rate rises while giving the option to move should circumstances change.
The society's 10-year fixed rate mortgage offers borrowers an annual opportunity to redeem their mortgage without penalty. If they choose, customers can redeem for free in December 2005 and then in December every year until 2014.
The completion fee is from £345 – making this a competitive product without the upfront costs associated with long-term mortgages.
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 10-year fixed rate 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.”