More borrowers look for 10 year fixed rate deals

November 23, 2015 by Brendan O'Neill

Lenders

An increasing number of borrowers are looking for long term security from their mortgage. As many home owners don’t know what effect a 1% rate increase could have on their monthly repayments, or when the base rate will increase, it’s unsurprising that more people are choosing a long term fixed rate deal.

As the Bank of England recently suggested that the low base rate may not be increased yet, and could remain at its current low rate until next year, borrowers are searching for some security for the future. A long term fixed rate deal will mean that borrowers won’t be concerned by interest rates rising unexpectedly, or how much they rise by. In response to the rising demand for 10 year fixed rate deals, lenders are starting to offer more products, with the number of products doubling in just the last year. In addition, the rates available on 10 year deals are also lower than ever.

The number of deals available has increased during the last two years, with 96 deals now on the market, according to the finance expert at Moneyfacts, Charlotte Nelson. She added that the product offers increased security for those who want to know that they will be able to afford their mortgage repayments in 10 years time. However, experts warn that signing up to a long term fixed rate deal may not be the best option for all borrowers. Mortgage advisers who have taken the CeMAP exam have the necessary knowledge to help you make the right decision for your own circumstances.