"It appears that the two and five-year fixed rate markets are becoming saturated"
17 lenders currently offer 10-year fixed rate products, up from 13 last year and nine providers two years ago.
Moneyfacts data shows that there are now 158 products on the market and the average 10-year fixed rate currently stands at a record low of 2.76%, a fall of 0.32% year-on-year from the 3.08% recorded in November 2018.
Darren Cook, finance expert at Moneyfacts, said: “It appears that the two and five-year fixed rate markets are becoming saturated, meaning providers need to seek new avenues to attract new mortgage business. There are currently 17 providers competing in the 10-year fixed rate market, which is nearly double the number of mortgage providers that offered this term two years ago.
“There are 158 products currently available in the 10-year fixed rate market, however, 108 products are only available to LTVs of 75% and below, while only two products are available at maximum 95% LTV.
“It appears that the 10-year fixed rate market may be geared towards the remortgage and second-time buyer market, as first-time buyers who step onto the housing ladder at 95% LTV are likely to want to remortgage down a LTV tier or two to get better rates as soon as they are able, and a 10-year stretch may well be far too long."
