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Nottingham Building Society launches 10-year fixed rate mortgage

Christina Hoghton
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Christina Hoghton

The fee-free mortgages enable borrowers to secure their monthly costs for a decade

The Nottingham is launching a 10-year fixed rate residential mortgage, with an interest rate of 2.30%, on Monday 4th May.

The mortgage is availble to borrowers with at least 30% upfront, in the form of a deposit of equity stake.

The no-fee mortgage is available on properties up to £750,000, and valuations are done using the lender’s automated valuation method (AVM) due to the coronavirus pandemic.

The product is available for property purchase and remortgage and also Early Repayment Charges for the whole 10-year period, which reduce from 7% of the outstanding balance to 1% in the final fixed rate year.

Nikki Warren-Dean, spokesperson at The Nottingham, said: “Introducing a mortgage which gives customers mortgage payment peace of mind for 10 years is a really positive addition.

“We are determined to remain as agile and proactive as we can be during what is a challenging time for everyone and, aligned with bringing in a new automated valuation policy, we are confident the new product adds choice to our range.

“It is also the first time we have brought in tiered ERCs, something that not just gives us new product range possibilities but also gives the customer another option when it comes to selecting the mortgage that suits them and their circumstances.”