You are here: Home - Mortgages - First Time Buyer - News -

10-year fixed mortgages hit record numbers

Written by:
The number of 10-year fixed mortgage products on the market has reached a record high, research has found.

According to rate monitoring firm Moneyfacts, there are now 157 options for 10-year fixed rate mortgages. The average rate charged on a 10-year fixed mortgage stands at 3.01 per cent, a fall of 0.09 per cent year-on-year from the 3.10 per cent recorded in August 2018.   

One of the latest lenders to enter the market is Newcastle Building Society, which launched two of these products this weekone available at 80 per cent loan-to-value and one at 90 per cent loan-to-value, charging 2.85 per cent and 2.89 per cent respectively. Borrowers are able to repay their mortgage after five years without penalty.

10-year fixed rate mortgage market analysis 

   Aug-14  Aug-17  Aug-18  Today 
Average mortgage rate  5.09 per cent  3.23 per cent  3.10 per cent  3.01 per cent 
Number of mortgages available  22  80  139  157 


Rachel Springall, finance expert at Moneyfacts, said: “Borrowers may well be thinking of different ways to safeguard themselves from potential rate fluctuations in the market, or even for some peace of mind during a period of economic uncertainty.  

“A decade-long fixed rate mortgage is no doubt a big commitment, so borrowers must feel confident that their circumstances are unlikely to change to avoid the expense of refinancing earlier than expected. There is a much larger choice of mortgages within the five-year fixed market and these should ideally be considered as an alternative.”    

Mixed views

Bob Steel of adviser firm First Mortgage, said: “In general terms, just under one per cent of our clients take a 10year fixed rate. Although we have seen a slight increase in the demand for a 10year rate since the vote to leave the EU, this is usually for a very specific type of client – i.e. nearing retirement and 10 years or slightly more left on mortgage with absolutely no plans on moving.

Steel went on to say he couldn’t “see the appeal of recommending a client to lock into a product with fairly hefty exit penalties.”

He said: “Whilst the market is moving towards longer term deals to take advantage of low long-term rates, I think the lenders need to make the exit penalties less excessive.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
State Pension claimants fall by 120,000 as increase in pension age bites

Changes to the State Pension age are saving the government an estimated £18.5m a week.