Newcastle Building Society has announced the launch of two 10-year fixed rate mortgage products.
The products are a 90 per cent LTV 10-year fix at 2.89 per cent and a 80 per cent LTV 10-year fix at 2.85 per cent.
According to financial product data provider Moneyfacts, the former offering is now the lowest rate in the sector for a 10-year fix at 90 per cent LTV.
Both products allow borrowers to repay their mortgage after five years without a penalty.
This is not the first time Newcastle has launched a significantly competitive mortgage product; the lender launched a 95 per cent LTV product last week, which it claimed was the lowest rate in the sector for this product type.
Moneyfacts finance expert Rachel Springall says: “Today, Newcastle Building Society has launched two 10-year fixed rate mortgages… these deals also allow borrowers to repay their mortgage after five years without penalty, whereas many other lenders apply a redemption charge up to the end of the 10-year term.
“A decade-long fixed rate mortgage is no doubt a big commitment, so borrowers must feel confident that their circumstances are unlikely to change to avoid the expense of refinancing earlier than expected.”