Skipton Building Society is offering a 10-year fixed-rate mortgage with no redemption penalties.
This is Skipton's first entry into the long-term fixed-rate market. The loan is fixed at 5.99 per cent until March 31, 2005, increasing to 6.24 per cent until March 31, 2014.
The loan then reverts to Skipton's variable rate with a 0.75 per cent discount.
The mortgage is available at up to 95 per cent loan to value, with free MIG up to 90 per cent LTV.
Unlimited capital repayments are allowed each year without charge and interest is payable only to the end of the month of redemption.
Head of media relations Jennifer Holloway says: “Longer-term fixed rates have been brought to the public's attention recently through the Miles review and the implication is that the UK's future borrowing habits may lie more in this direction.
“Skipton's 10-year fixed-rate mortgage is therefore a good mid-term solution for homeowners who like the idea of knowing exactly what their repayments will be for a long period but who are not prepared to gamble on the 25-year market.”