Monthly repayments on a £150,000 loan are £699 at 2.84 per cent and £707 at 2.94 per cent. The total cost over the decade, including the £999 fee, is £84,879 or £85,839 respectively.
As an added perk, remortgaging customers can receive a free valuation, as well as the choice of free standard legal work or £250 cashback.
A flurry of other lengthy loans have been unveiled by lenders in recent weeks. Barclays recently launched a ten-year home loan at 2.99 per cent with a £999 fee through its mortgage arm Woolwich.
Under the Nationwide deal, borrowers can make overpayments of 10 per cent a year without penalty.
This is a top rate, but remember if your circumstances change and you need to move or change your mortgage, you could get hit by early repayment charges.
Nationwide charges 7 per cent of what is remaining of the loan to leave in the first four years of this mortgage.
This falls from, 6 per cent in the fifth year, 5 per cent in the sixth, 4 per cent in the seventh, 3 per cent in the eighth, 2 per cent in the ninth and to 1 per cent in the final year of the mortgage.
David Hollingworth, associate director of broker London & Country, says: ‘Ten-year fixed-rate deals just keep getting lower. It is very attractive indeed, especially if you’re not planning on moving in the next couple of years.’
Source: This Is Money.co.uk 21st January 2015