A 10-year fixed rate buy-to-let mortgage went on the market this week, underlining the intense competition in the home loan market.

The Mortgage Works launched the only off-the-shelf ten-year loan in the buy-to-let market at an interest rate of 4.99 per cent with a £995 fee. The mortgage is available to borrowers with a deposit of at least 25 per cent.

The loan echoes moves in the residential market to cut rates on long-term deals, as lenders try to appeal to borrowers wanting to lock in historic low interest rates.

Henry Jordan, managing director of TMW, the buy-to-let arm of Nationwide, said the mortgage “will fill a gap in the market that has seen a trend towards opting for longer term options”.

Recent research by Mortgages for Business, a buy-to-let specialist broker, found just 8-10 per cent of landlords said they would consider fixing for 10 years. Steve Olejnik, sales director at Mortgages for Business, said the ten-year term was a “big commitment” and shorter term lengths of five years often suited landlords, allowing them to review and potentially refinance loans.

But he added that ten years was likely to appeal to a specific group of borrowers. “I can particularly see older investors looking for certainty for the last 10 years of their mortgage term.”

The deal comes as the Council of Mortgage Lenders announced an 11 per cent drop in the value of buy-to-let loans in November 2014 compared to the previous month. However, the sector showed a 9 per cent increase by volume and 14 per cent by value on the same month in 2013.

Buy-to-let has shown consistent growth in the mortgage market, unlike home movers and remortgages, which showed an annual decline in the value of lending. First-time buyers grew by an annual 6 per cent by value, but fell 3.4 per cent by volume.