10-year fixes take off

There are currently 77 10-year fixes on the market compared to just 22 in October 2014, while the average rate has plummeted from 4.98% in October to 4.17% today.

Sylvia Waycot, editor at Moneyfacts, said: “The 10-year fixed rate bandwagon is racing down the road and lenders seem to be jumping all over it.

“This is great news for borrowers as they are able to fix their repayments for a decade at a time, which removes the fear of what happens if interest rates rise.

“Traditionally, the fear for those locked into a fixed rate has been ‘what if interest rates drop generally?’, Which would mean they could miss out on cheaper deals.

“However, as Bank of England base rate is currently sitting at an historic low, and the only talk is of when it should rise rather than drop, this is less likely to be a concern for most people fixing.”

In January 2013 there were 15 10-year fixes on the market, yet this number fell to 8 by January 2014.

Lenders who borrowed from the government’s Funding for Lending Scheme have four years to show they have lent the money out in mortgages and that their mortgage books have grown sufficiently.