Accord Mortgages will from today (13 September) offer a 10-year fixed rate mortgage.
Homebuyers with a 25 per cent deposit can benefit from Accord’s new mortgage, at a 2.88 per cent interest rate.
The mortgage can be ported to another property if the borrower wishes to move during the fixed-rate period, and is the lowest ten-year fixed rate available on the market at 75 per cent loan-to-value.
It is availble for either remortgage or a house purchase, and has an £845 product fee.
The intermediary-only lender, which is part of Yorkshire Building Society Group, recently made rate reductions across its 75 per cent and 85 per cent LTV mortgages, including a two-year fix now available at 1.39 per cent with a £845 fee.
David Robinson, Accord national intermediary sales manager, said: “We have launched this new ten-year fixed rate mortgage in response to strong customer demand for a longer-term fix.
“Many borrowers are looking to make the most of the current record-low interest rate environment for as long as possible.
“Our new offering will give homeowners the security of knowing how much their mortgage repayments will be over the next decade, especially during this time of economic uncertainty.”
Rachel Springall, finance expert at Moneyfacts, said: “These decade-long fixed mortgages are becoming a new favourite amongst lenders who want to provide borrowers with a long-term option to secure monthly mortgage payments.
“Borrowers must always work out the true cost of any deal and be sure that their circumstances will remain relatively unchanged for the next 10 years.”