Newcastle Intermediaries has cut rates on a number of its mortgage products and introduced free legals on several deals.
The lender is offering a two-year fixed rate at 2.15 per cent and a 10-year fixed rate at 3.35 per cent, both available up 80 per cent loan-to-value.
These products come with no reservation or completion fees, a free standard valuation, and free legal fees for re-mortgages or £200 cashback for house purchases.
Newcastle said the 10-year fix would be suitable for borrowers looking for a long-term fix amid speculation of a base rate increase.
Brokers have recently made the case for looking at longer-term fixed rates as lenders begin to raise the cost of borrowing.
Ben Smith, head of product development at Newcastle Intermediaries, said: “We have reassessed all of our rates in a bid to offer borrowers choice and flexibility.
“Whilst rates across the market are rising ahead of a potential base rate rise in November, I’m pleased we can offer borrowers a competitive range of fixed rate products.
“Additionally, our free legal fee feature is ideal for the growing re-mortgage market.”
Kevin Hever, helper and adviser at Wolverhampton-based Cornerstone Financial, commented: “Ten-year fixed rates are definitely going to be thought about more over the coming months, because the word is interest rates will be going up, and there is a lot of stuff in the news about rates going up.
“Already, I see a lot of demand for longer term fixes. People are a bit reluctant to go for 10 years, but a rate like that should be very encouraging – particularly for older borrowers.
“If you have 10 years left on your mortgage, it could be a good thing to do so you know what you are paying until the end of the deal.”
simon.allin@ft.com
