Yorkshire Building Society has launched a new 10-year fixed rate mortgage, for borrowers with at least a 25% deposit.

The deal, which has an £845 product fee, is available for either house purchase or remortgage, and comes with a 2.89% rate. It is the lowest 10-year fixed rate available on the market at 75% loan-to-value.

Brendan Gilligan, mortgage product manager for Yorkshire Building Society, said: “We have launched this new 10-year fixed rate mortgage in response to strong customer demand for a longer-term fix. These requests follow uncertainty about the economy and interest rates after the UK voted to leave the European Union.”

Rachel Springall, finance expert at Moneyfacts, said: “In times of uncertainty a decade-long fixed mortgage will provide borrowers with a long-term option to secure their 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 so they can avoid Early Repayment Charges.”

First-time buyer deals

The mutual has also launched two competitive mortgages for borrowers with 5% and 10% deposits.

The society is offering a two-year fixed rate 1.94% mortgage for those with a 10% deposit, which is available for borrowers who are buying a home and those who are remortgaging. It has a £1,345 product fee.

Those with a 5% deposit can access a 3.48% mortgage, fixed for two years, which is for those buying a home only. It has an £845 product fee.