Good news for buyers and professionals as property market dips.
Research from Moneyfacts reveals that the number of 10-year fixed rate mortgage deals on the market is continuing on a sharp upward trajectory.
Shorter term fixed rate mortgages have been the favoured option for borrowers for many years, but the historic low rates on offer in today’s market means that fixing for longer periods is definitely an attractive offer, hence the rise of the decade-long fixed rate.
In January 2014, there were just eight 10-year deals to choose from, but by October that number had risen to 22, and just three months later, the figure today is 77.
Along with an increase in choice, the interest rates being offered are falling, too. The average rate fell from 4.23% in January 2014 to the lowest average 10-year fixed rate deal ever, at just 4.17%.
Lenders who borrowed from the Government’s Funding for Lending Scheme need to show they have lent the money out in mortgages and that their mortgage books have grown. They have just four years from borrowing the money to do this.
At the same time, constant talk of a BoE base rate rise is making many borrowers jumpy as the prospect of increased monthly mortgage payments loom.
This is great news for borrowers as they are able to fix their repayments for a decade at a time, which removes the fear of what happens if interest rates rise.