Time for a 10 year fixed rate?
Although 9 out of 10 borrowers go for a fixed rate mortgage, most don’t fix for too long. This can be because they are worried about early repayment charges or don’t plan to stay in their home for that long.
However, a growing number of lenders are now offering 10 year fixes – that’s right all the way to 2028 – at some very attractive rates. The average 10 year fixed rate loan, with a 25% deposit, is now at 2.76% which compares with an average 2 year deal on the same terms at 1.74%.
So the ‘security premium’ for that 10 year deal is just 1.02% the lowest it has been for years. On a 25 year, £150,000 repayment mortgage, the extra cost is just £76 per month.
What’s more, most 10 year deals allow for the borrower to pay back 10% of the loan each year without penalty, and they also let you ‘port’ your mortgage on to another property when you move.
We can help. Just call 01243 861344 or click here and we will put you in touch with our expert brokers – who can handle the whole thing over the telephone or on-line.