Newcastle Intermediaries has introduced a seven-year fixed rate mortgage to its product portfolio.

The lender said the new product was in response to demand from borrowers looking for the security of a longer-term product.

The seven-year fixed rate at 3.26% (3.6% APRC) comes with early repayment charges of 5% until 31/08/2025, 4% 31/08/2026, 3% until 31/08/2027, 2% until 31/08/2028 and 1% until 31/08/2029.

The 80% LTV product is available on house purchases and remortgages up to £1 million, and offers the flexibility of 10% overpayments per annum, £500 cashback and a free standard valuation.

Mark Wilkinson, national sales manager at Newcastle Building Society, said: “As the market evolves we are committed to providing a range of solutions that address the challenges brokers face as consumers look to remortgage or purchase a property in the coming months.

“We are acutely aware of concerns borrowers have due to the increasing cost of living. Against a backdrop of rising costs and energy bills, our seven-year fixed rate mortgage product offers borrowers peace of mind by delivering payment certainty, as well as protection against rising interest rates.”