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

Borrowers looking to bag 10-year mortgages will be ‘disappointed’ as numbers fall

Written by: Anna Sagar
The number of 10-year fixed rate mortgages has fallen to 159 deals across the sector, with lenders pulling products in the past few days, analysis reveals.

Moneyfacts figures show that the number of 10-year fixed rates on the market has decreased from 169 on 16 May to around 159 currently.

It noted that Leeds Building Society, The Co-operative Bank and Platform had removed their 10-year fixed rate mortgage products in the past few days.

Since the start of the year, the number of 10-year fixed rates has been gradually increasing, going from 135 in January to 157 in February and then 165 in March and 168 in April.

However, the number of 10-year fixed rates is still above last year’s figure, which stood at 129.

The figures reveal that the average rate for a 10-year fixed rate has risen from 4.99% to 5.06% since the start of April.

Average pricing has been increasing over the last year from 3.21% in May.

Decade-long fix is a ‘committment’

Rachel Springall, finance expert at Moneyfacts, said that borrowers looking to secure a decade-long mortgage may be “disappointed to see a drop in product choice”.

“When lenders withdraw from such a niche sector, it can be in reaction to interest rate volatility, or even down to demand. However, this move may influence other lenders to follow suit and reconsider their own propositions,” she noted.

Springall said that those borrowers who want “peace of mind with their mortgage repayments” could be comparing five-year fixed rates and 10-year fixed rates amid “interest rate uncertainty”, but average interest rates are around 2% higher than they were a year ago.

“A decade-long fixed mortgage is a commitment, and consumers must be confident with the length of the term before they apply, as an early repayment charge would apply should they exit their mortgage early. Anyone considering a new mortgage would be wise to seek advice to go over the full package of any deal to find the right deal for them,” she explained.

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.

Everything you wanted to know about ISAs…but were afraid to ask

The new tax year is less than a fortnight away and for ISA savers or investors, it’s hugely important. If yo...

Your right to a refund if travel is affected by train strikes

There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

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.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week