Long-term fixed rate mortgages have been making the headlines recently as speculation on the future of interest rates continue.
The Cheshire Building Society has been offering long-term fixed rate mortgages since 2003, all of which have penalty-free redemption windows over the term of the loan.
The 15-year fixed rate mortgage has penalty free windows in years 6, 7 and 8 of the loan, with borrowers able to get out of the loan at any time from year 10 onwards.
The 20-year fixed rate mortgage has penalty free windows in years 6, 8, 10, 12 and 14, with borrowers able to get out of the loan at any time from year 15 onwards.
The 25-year fixed rate mortgage has penalty free windows in years 6, 8, 10, 12, 14, 16 and 18, with borrowers able to get out of the loan at any time from year 20 onwards.
The Cheshire is also set to introduce a mortgage where the borrower can chose a term that suits them between 15 – 20 years and 21 – 25 years.
Nicky Cardwell, Cheshire’s Mortgage Product Manager said: “Ultimately, we are offering a six year fixed rate mortgage with the option of continuing the fixed rate. This makes this type of product much more attractive for borrowers who want to set the amount of money they pay for their mortgage each month but do not want to feel they are trapped in a long term deal.
