The lender said the 10-year fixed rate mortgage is available to first-time buyers, home-movers as well as those looking to remortgage and take on additional borrowing.

It’s for customers with a maximum loan-to-value (LTV) of 80% and is available online or over the phone. It’s not available through mortgage brokers.

Applicants can borrow up to £550,000, and it comes with a £490 product fee, or a fee-free option with a higher percentage rate. Customers can make unlimited overpayments.

The mortgages available, which can be held up to a maximum 40-year term and include a free standard valuation, are:

• 60% LTV rate: 3.34%; £490 product fee
• 60% LTV rate: 3.49%; £0 product fee
• 75% LTV rate: 3.49%; £490 product fee
• 75% LTV rate: 3.59%; £0 product fee
• 80% LTV rate: 3.59%; £490 product fee
• 80% LTV rate: 3.69%; £0 product fee.

First Direct said the launch of the 10-year fixed mortgage rate is in response to the fluctuating base rate, which has increased at each one of the Bank of England’s monetary policy meetings in 2022, and aims to give some long-term reassurance to homeowners.

It comes just three months after the launch of its 5% deposit mortgage.

How good is the 10-year fixed rate mortgage offering?

According to data site, Moneyfacts, the average 10-year fixed rate today is 3.97%. It said the 10-year mortgage market is still “a niche area” with around 130 deals to choose from and only a couple more added from a month ago.

Rachel Springall, finance expert at Moneyfacts, said: “The new 10-year fixed range from First Direct includes a competitive priced deal for borrowers at 60% loan-to-value. The deal offers an attractive rate of 3.34%, carries a small fee of £490, and offers an incentive package of a free valuation for all and free legal fees for remortgage customers.

“Overall the deal may attract borrowers looking to save on their upfront cost of their mortgage and lock into a fixed rate over the longer term. Borrowers must be comfortable with the term as if they wish to get out of the deal earlier, then they will need to pay an early repayment charge.”

Chris Pitt, CEO of First Direct, said: “The cost-of-living crisis in particular has forced homeowners and prospective buyers to rejig their monthly incomings and outgoings, of which mortgage payments tend to take up the lion’s share. After a string of base rate hikes in 2022, the launch of this product is to give homeowners and buyers long-term peace of mind while external volatility – such as soaring house prices and rising utility bills – shows no signs of abating.”