Norwich & Peterborough BS launch ten-year fixed rate mortgage at 3.99%
Tuesday, 24 January 2012 03:55
The Norwich & Peterborough Building Society (N&P) will launch a ten-year fixed rate mortgage deal at 3.99 per cent for buyers who need to borrow up to 75 per cent.
The new product is the lowest ten-year fixed rate deal that has ever been made available and is available from Wednesday 25th January 2012. The mortgage deal comes with a low fee of £295 and borrowers will also benefit from a free valuation and legal fees (for re-mortgages) or £200 cashback (for purchase customers).
There are better variable and shorter term rates available but the option to fix at a rate just below four per cent for such an extended term offers a secure option for borrowers who would like to know exactly what they are paying for ten years.
Interest rates are currently at 0.5 per cent and most economists believe they will remain at that rate for at least 18 months. However, no-one can predict what will happen to rates over the next decade so the N&P ten-year fix provides an interesting alternative in the mortgage market.
Commenting on the new mortgage, Product Manager for Norwich and Peterborough Building Society Richard Barker said; "The current swap rates have allowed us to look at our mortgage provision and offer this excellent product. We know that this competitive rate will be welcome news for those who wish to fix for a longer period of time giving them the certainty of what their monthly payments will be for the duration of their loan.”
Insight Analyst from Defaqto financial website David Black said: "There are very few long term fixed rate mortgages currently available on the market and this one has the lowest rate as well as a low fee.”
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