Newcastle Building Society has launched a 10-year fixed rate mortgage at 5.99 per cent, with an annual penalty-free option to redeem.
The long term fixed rate aims to provide borrowers with security against potential rate rises while giving the option to move should circumstances change.
Customers can redeem for free in December 2005 and then in December every year until 2014.
Newcastle chief executive Robert Hollinshead says: “Although there is much speculation at present about forth-coming interest rate rises, it is impossible to tell where the base rate will be in ten year's time. Our 10-year fixed rate mortgage is designed specifically for this situation to give people the best of both worlds: the security of a fixed rate as well as a get-out clause.”