You are here: Home - News -


  • 21/10/2002
  • 0
Are 10-year fixed products worth recomm-ending, or is it best to stick to shorter-term rates?

There is a limited market for 10-year fixed rates as most borrowers focus on the shorter term where two-year fixed rates, without overhanging redemption, are available below 4%.

Either way, borrowers can take advantage of low rates and the ability to make an early switch to another deal when the time is right.

With current interest rate levels it is true to say the total cost over 10 years tends to be lower on the shorter-term deals, although this depends on the rate that will apply from year three onwards.

But there are some who want certainty of payment commitment for the next 10 years because, despite the month-on-month stability of the bank base rate, they are worried rates might jump upwards and cause a return to payment difficulties.

For borrowers in this position, the choice comes down to a balance between rate, redemption terms and the ability to make capital repayments within the term.

For the borrower who wants some long-term certainty, there are now a number of options to choose from, depending on individual priorities.

Stuart Johnson


There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.


Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.


Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.


Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.

Read previous post:

The press are at it again. ''House prices driven to unsustainable levels by the buy-to-let market,' ...