Fixing a mortgage over a 10 year+ term means that borrowers can have the financial stability of knowing what their mortgage repayments will be.
Jane Dawson, Head of Press and PR at independent financial information provider, Moneyfacts said: "There has been little interest in long-term fixed rates from borrowers so far. But another increase in Bank base rate will have left manyhomeowners wondering just how many more rises they are going to have to take. The certainty of a rate fixed for ten years or even longer is likely to be far more temptingto borrowers now than it has been before."
A few lenders offer these products - Abbey, Britannia BS, Cheshire BS, Derbyshire BS, Halifax, HSBC, Leeds & Holbeck BS, Manchester BS, Marsden BS, Newcastle BS, Northern Rock, Norwich & Peterborough BS, Scarborough BS, Woolwich and Yorkshire BS. Some lenders have recently re-launched these products due to customer demand.
In the chart below rates range from 5.89%. Many lenders’ standard variable rates are around 6.50% - these will of course continue to increase if base rate does. On a £100,000 repayment mortgage over 25 years, monthly repayments would be £637.59 on a rate of 5.89% and £675.21 on a rate of 6.50% – an extra £37.62 a month – a massive £11,286 over 25 years.
Samantha Owens, Moneyfacts Mortgage Research Editor, says: "Long term fixed rates are fairly competitive at the moment. The rates do tend to be higher than those of other mortgage types and shorter fixed terms, but they do give borrowers peace of mind in knowing that their payments will not increase, even if base rate continues to do so. moneyfacts.co.uk, the UK’s leading INDEPENDENT financial website includes a mortgage search covering over 8000 products and also mortgage best buys - the ideal research tool for people looking for a new mortgage or to remortgage."
LONG TERM FIXED RATES
Lender
Telephone
Rate %
Date
LTV
Incentive
Redemption Penalty
Abbey
0800 100 802
6.09
02/11/2019
95%
Advances under 90%, no MIP.
To 2.11.19.
Cheshire BS
0800 195 1514
6.15
31/08/2029
95%
Flexible option, free valn & free A for 3 mths. Advs up to 90%, no MIP
To 31.8.24
Derbyshire BS
0800 085 2020
5.89
31/07/2014
90%
No MIP.& free A for 6 months.
To 31.7.14
HSBC
0800 494999
5.89
29/08/2014
95%
No MIP. Remtgs free valn & in Gt Britain & N Ireland help with costs
To 29.8.14
Leeds & Holbeck BS
0845 050 50627
5.99
01/09/2014
95%
Free A for 6 months & advances up to 90%, no MIP.
To 1.9.14
Marsden BS
01282 440500
5.99
31/08/2014
80%
Free valn & remtgs free legal fees. Free A for 3 mths & no MIP.
To 31.8.14.
Newcastle BS
0845 606 4488
5.99
30/09/2014
90%
Advances up to 85%, no MIP.
To 30.9.14.
Woolwich
02920 547683
5.99
30/09/2014
95%
Flexible option & advances up to 90%, no MIP
To 30.9.14.
Yorkshire BS
0845 606 6566
5.89
31/10/2019
95%
Free A for 6 mths, flexible option, refund valn & £250 towards legal fees. Advs up to 90%, no MIP
To 31.10.19.
