Long term fixed rate deals are now cheaper than ever

February 27, 2016 by Brendan O'Neill

Rates

As the mortgage rates for short term fixed rate deals plummet, the rates for a long term 10 year fixed rate deal are now following a similar trend and are also reducing rapidly.

As more people search for a 10 year fixed rate product, lenders are lowering rates in line with their competition to secure custom for the next decade. Many of the lenders, including TSB, Woolwich and First Direct, are lowering their rates for long term fixed rate deals, trying to lure customers to their door.

First Direct is offering 2.89% to borrowers who have a deposit or equity between 40% and 60% of the Loan To Value ratio. Other lenders have competitive deals, although some have arrangement fees or valuation fees to pay on top.

Generally, borrowers would stay away from a long term fixed rate product, in case the interest rates were lowered during the term. However, as mortgage interest rates are now so low, borrowers will be able to fix themselves into a low rate deal for the next 10 years, with little worry of interest rates being any lower.

Once a 10-year deal has been secured, you don’t have to worry about finding another competitive rate for a while. This also applies to any interest rate increases, as the rates can soar over the course of a decade.

Before signing up to a long term deal, it is advisable to seek advice from a CeMAP qualified mortgage adviser to ensure that this is the most suitable course of action.