The number of 10-year fixed rate mortgages has hit its highest number since 2007, new reports reveal.
According to financial service advisor Moneyfacts, there were only 22 deals of this kind on the market five years ago – with new figures revealing that there are now 157.
The average rate charged on a 10-year fixed mortgage stands at 3.01%, a fall of 0.09% year-on-year from the 3.10% recorded in August 2018.
One of the latest lenders to enter the market is Newcastle Building Society, launching two products today (13th August), one available at 80% loan-to-value and one at 90% loan-to-value, charging 2.85% and 2.89% respectively.
Borrowers are also able to repay their mortgage after five years without penalty.
On reports, Rachel Springall, finance expert at Moneyfacts said: “Borrowers may well be thinking of different ways to safeguard themselves from potential rate fluctuations in the market, or even for some peace of mind during a period of economic uncertainty.
“A decade-long fixed rate mortgage is no doubt a big commitment, so borrowers must feel confident that their circumstances are unlikely to change to avoid the expense of refinancing earlier than expected.
“There is a much larger choice of mortgages within the five-year fixed market and these should ideally be considered as an alternative.”