10-year fixes on the rise
Average interest rates have also fallen from 4.98% in 2014 October to 4.33% today – the lowest ever average for 10-year fixes.
Sylvia Waycot, editor at Moneyfacts.co.uk, said: “While 10-year fixed rate deals may cost more per month than the current 2 or 5-year fixed rates, over the life of the mortgage (bearing in mind that the interest rate is unlikely to fall) borrowers are potentially locking into the cheapest deals for a whole decade, especially if and when shorter fixed term rates do start to rise.
“A borrower who favours 2-year fixed rate deals will have had five deals and also five sets of setting up fees in the time it will take for one 10-year deal to expire.”
“However, when considering a 10-year fixed rate, it is important to make sure that the deal is portable, as you may need to move to a bigger or smaller home in the future and you won’t want to incur early redemption fees, which can be high.”
She added: “The stage is set for borrowers to embrace the longer fixed rate mortgage; there are more on offer and they are cheaper than ever before.
“The question is, are borrowers prepared to fix for a decade, bearing in mind the popularity of the short-term fixed?”