Virgin Money has launched a range of seven and 10-year fixed rate residential mortgages.
Andrew Asaam, director of mortgages at Virgin Money, said the products will enable customers to take advantage of the current low interest rate environment and secure the certainty of their mortgage payments through a longer term mortgage deal.
Mr Asaam said: "We are delighted to launch our new long-term fixed rate mortgages. We have seen an increased appetite from customers wanting the opportunity to future-proof their mortgage repayments.
"With interest rates still relatively low we are offering homeowners the peace of mind of low mortgage payments for the next seven to 10 years.”
The new loans were launched today (25 May), and include a seven-year fixed rate at 65 per cent loan-to-value (LTV) at 2.37 per cent and a seven-year fixed rate at 75 per cent LTV at 2.42 per cent.
Both deals come with a £995 product fee.
There is also a seven-year fixed rate at 90 per cent LTV at 2.95 per cent with no product fee.
The 10-year fixed rate for 65 per cent LTV is at 2.59 per cent, while the 10-year fixed rate at 75 per cent LTV is at 2.65 per cent.
Lastly, the a 10-year fixed rate at 90 per cent LTV is at 3.25 per cent. All three loans come with a £995 product fee.
The products are available for house purchase, remortgage and product transfer, with remortgage customers also benefiting from a free valuation and free legal work.
Selected purchase products also include cashback of up to £300.
The products allow 10 per cent capital repayments every year without charge.
Alan Chan, director and chartered financial planner for London-based IFS Wealth & Pensions, said: “The mortgage deals seem competitive and may be right for some clients who want to tie-in a good deal for longer, particularly if they expect interest rates to go up significantly in the next seven or 10 years.
"But I think my main concern would be the fact that they are very long-term deals and a lot can change in that time. The early repayment charges will be hefty for anyone wishing to break the deal early.”
aamina.zafar@ft.com
