"Lenders have expanded their mortgage range to accommodate consumers searching for a lengthier fixed term – including a 15-year mortgage launched by Virgin Money"
The number of 10-year fixed rate mortgage products available on the market has reached a record high, according to data from Moneyfacts.
Today, Newcastle Building Society has launched a range of 10-year fixed rates, available at 2.85% up to 80% LTV and 2.89% at 90% LTV.
Moneyfacts research shows that the number of 10-year fixed rate mortgages has now hit 157 options. The average rate charged on a 10-year fixed mortgage stands at 3.01%, a fall of 0.09% year-on-year.
Rachel Springall, finance expert at Moneyfacts, said: “Borrowers may well be thinking of different ways to safeguard themselves from potential rate fluctuations in the market, or even for some peace of mind during a period of economic uncertainty. Thankfully, lenders have expanded their mortgage range to accommodate consumers searching for a lengthier fixed term – including a 15-year mortgage launched by Virgin Money within the past fortnight.
“Today, Newcastle Building Society has launched two 10-year fixed rate mortgages, one available at 80% loan-to-value and one at 90% loan-to-value, charging 2.85% and 2.89% respectively – the latter becoming the lowest rate in its sector. These deals also allow borrowers to repay their mortgage after five years without penalty, whereas many other lenders apply a redemption charge up to the end of the 10-year term.
“A decade-long fixed rate mortgage is no doubt a big commitment, so borrowers must feel confident that their circumstances are unlikely to change to avoid the expense of refinancing earlier than expected."