You are here: Home - News -

Decade-long mortgage rates plunge to average 3% – Moneyfacts

by:
  • 22/01/2019
  • 0
Decade-long mortgage rates plunge to average 3% – Moneyfacts
Mortgage rates on 10-year fixes are now at an average of just 3.05 per cent, analysis has showed.

 

The number of decade-long deals on the market has also increased by almost 10 times since 2014, according to Moneyfacts.

There are now 150 options in this sector, compared to just 16 deals five years ago.

More than 80% of the mortgages also offer a porting option for those who wish to move home during this period.

The typical rate has fallen from 4.61 per cent over the same time period.

Long-term fixed rates are good for borrowers looking for security in times of uncertainty, according to Darren Cook from Moneyfacts.

He said: “As consumers prepare themselves for another potential base rate rise this year, their thoughts will be on how to safeguard themselves from any increase in interest rates

“Despite lenders in the longer-term market demonstrating competitiveness and variety to attract borrowers’ attention, it’s unavoidable that they must factor in longer-term fluctuations and higher SWAP rates.

“This means 10-year fixed rates are still typically higher than those found in the more popular two and five-year fixed rate markets.

“Borrowers must also be aware that 10-year fixed rate mortgages are often accompanied by hefty redemption penalties, which require a borrower to be tied into the deal for the full length of the term.”

There are 0 Comment(s)

You may also be interested in

Read previous post:
Sally Laker
Sainsbury’s Bank adds Mortgage Intelligence to broker partners

Sainsbury’s Bank has added Mortgage Intelligence Network to its broker partners.

Close