Best 10-year fixed-rate mortgages: should you lock into a long-term deal? – lovemoney.com

Right now, 10-year mortgages that are fixed-rate are at an all-time low, but there are several factors to consider before diving headfirst into one of these 10-year plans. For instance, you’re going to want to overlook the restrictions that are associated with the deal that you are looking at. A good example of this are the Early Repayment Charges (ERC’s) that are associated with the mortgage plan that you are looking at. Some of them have massive rates – up to 6%!

Key Takeaways:

  • Because borrowers are intent on shielding their finances from potential interest rate hikes and the uncertainty induced by Brexit, cheap 10-year fixed rate mortgages have risen in number.
  • In 2014 there were only about 14 of such cheap deals, but according to Moneyfacts, a financial data site, there are now more than 150 deals.
  • The rates for these sort of mortgages are even getting cheaper with the average being 3.05% from 4.61% although rates of about 2.25% can still be found.

“YBS is admittedly one of the smaller players, but the fact so many lenders have launched deals stretching beyond five years is a good sign that there’s demand across the board.”

Read more: https://www.lovemoney.com/bestbuys/53396/best-10-year-fixed-rate-mortgages-rates-cheapest-fees-penalties

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