Spotlight On: N&P's 10-year fixed mortgage

The deal

Norwich & Peterborough – owned by the Yorkshire building society – is offering a decade-long fixed-rate mortgage at 3.99 per cent.

Good points?

The deal includes a free valuation plus free legal fees for remortgages or a £200 cashback option for buyers. The rate is low for a deal lasting 10 years.

Bad points?

Do you want to lock yourself into a loan for 10 years? There are better short-term deals and rates may not soar within a decade. If you are interested, you'll need a 25 per cent deposit.

Conclusion

It's tempting to take out a long-term mortgage when the rate seems attractive. But you may need more flexibility – especially if you plan to move. Also, depending on how interest rates move, the deal may prove to look less attractive with hindsight.