Newcastle Building Society Intermediary Services will launch the product, which is fixed at 4.49% (5.2% APR) until 30th June 2024.
The added benefit of no ERC after five years means borrowers have the flexibility to move home or repay their mortgage without any restricting penalties after this date.
This product is ideal for those that want the comfort of fixed mortgage payments, in an environment when there is regular talk of interest rate rises. In fact the Confederation of British Industry forecasted yesterday that interest rates will start to rise in the first three months of next year.
The product is available through Legal & General, Openwork, PINK, First Complete, Intrinsic, Tenet, Positive Solutions and Brilliant Solutions, Sesame and TMA.
Steven Marks, Corporate Development Executive, NBS said:
“This is an ideal time for us to offer a ten-year mortgage. Commentators are discussing not if rates will rise but when so we think many borrowers will be looking to fix in the longer term, protecting themselves against these rises.
“However, we also wanted to offer flexibility to our borrowers knowing that in five years their circumstances could change. So, the mortgage is perhaps even more adaptable given there are no ERCs incurred after this date.”
