Accord Mortgages has launched a new 10-year fixed-rate mortgage at 2.88%.
The product has an £845 fee, and is available to borrowers with a 25% deposit.
The rate of 2.88% is the lowest 10-year fix available on the market at 75% loan-to-value (LTV), according to Moneyfacts.
David Robinson, 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.”
The intermediary-only lender, which is part of Yorkshire Building Society Group, has also made rate reductions across 75% and 85% LTV mortgages, including a two-year fix now available at 1.39% with a £845 fee.