From Wednesday 25 January the new product will be available with a fee of only £295; borrowers will also receive a free valuation and free legal fees (for remortgages) or a £200 cashback option (for purchase customers).
Commenting on the new mortgage Richard Barker, product manager for Norwich and Peterborough Building Society, said: “We are delighted to launch this new product and it is one we are confident will be well received in the market.
“The current swap rates have allowed us to look at our mortgage provision and offer this excellent product. We know that this competitive rate will be welcome news for those who wish to fix for a longer period of time giving them the certainty of what their monthly payments will be for the duration of their loan.
Since our merger with Yorkshire Building Society at the end of 2011 we have been working to increase the mortgage products that we provide and this is an example of the competitive rates that we will be offering throughout 2012.
“Additionally we believe the low fee on the product alongside the valuation, legal and cashback options will be attractive to those trying to get on the property ladder together with those looking to remortgage.”
Insight Analyst from Defaqto financial website, David Black, said the product would be welcome news for consumers: “There are very few long term fixed rate mortgages currently available on the market and this one has the lowest rate as well as a low fee.
“If you know that you’re going to stay in your property for a longer period of time and want a long term rate - then certainly this new product from Norwich and Peterborough Building Society offers a good solution and is worth considering.”
