LiveMore has launched a 10-year mortgage for borrowers aged 50 to 90+, but with no penalties after five years.

The 5+5-year fixed rate mortgage provides the certainty of a 10-year fixed rate with the flexibility for borrowers to redeem the product after five years if they wish with no early repayment charges (ERCs).

In the first five years the ERCs reduce annually at 5/4/3/2/1% but for years six to 10 there are no penalties.

Rates start at 7.04% and are available across LiveMore’s interest-only and capital and interest product ranges and the product is portable (subject to certain criteria at the time of application).

Leon Diamond, CEO and founder of LiveMore, said: “This new product is essentially a five-year fixed rate with the additional benefit of up to another five years fixed, which bringspeace of mind if rates continue to rise.

“But if rates go down, there is the option to redeem the mortgage after five years with no early repayment charge giving the borrower the freedom to move onto a better rate.”

The current interest rate environment means that longer-term fixed rates are cheaper than two-year fixes. This gives the added advantage that borrowers should be able to borrow more on a 10-year fix than a two-year fix.

Diamond added: “We have come out of a low interest rate environment into territory not seen for almost a decade and a half. The markets are pricing in several more rises and no one can guarantee that rates will be lower in two years’ time. This product helps with the dilemma of whether to fix longer or shorter due to its flexibility.”