There is much speculation within the property market about what may happen over the course of the next 10 years. Rates may finally increase, and the UK may have left the European Union. To provide security during these potentially uncertain times while encouraging an increase in its market share, Nationwide has recently unveiled a range of 10-year fixed-rate mortgages.
As with all lenders, the larger deposit you have, the lower the rate, with Nationwide offering 3.49% for the biggest deposit, but the decade-long fixed rates are also available at different rates to those with lower deposits of 15%.
With all of the anticipation that currently surrounds interest rates and what they are predicted to do, fixed rates are proving especially popular to all borrowers. Mortgage professionals who work as brokers or for specific lenders, and have achieved the required level of CeMAP training, are witnessing a preference as fixed rates are so competitively priced. They also offer security, particularly for those who like to budget and know exactly what they have going out each month.
Many experts would still recommend a five-year fixed-rate period, but this deal is great for those who are really looking for long-term security. However, it is important to note that if you wished to exit the mortgage early, there would be a redemption penalty that would be applied. It reduces in line with the product’s duration, but you would still need to consider the implications if you were planning to move house, or simply repay the mortgage early.