The once unpopular ten year fix mortgage is regaining its popularity and here’s why.
With the vote to leave the EU came uncertainty. Will interest rates go up or continue at their record breaking low? Nobody knows but as uncertainty grows, many borrowers want the security of knowing how much their mortgage repayments will be for the next ten years.
Another reason is the great rates on offer. Ten year fixes have higher rates initially but when the cost involved with switching every two years is factored in, the ten year fix could well prove a good buy especially if interest rates go up in the next two to ten years..
A cut in early repayment penalties
For many two year deals, the early repayment charge is 3 per cent of the outstanding mortgage. This means it is often not worth remortgaging until the end of the two year term. Ten years stuck in the same deal with a 3 per cent early redemption penalty is not appealing, however some ten-year fixes now come with a cheaper get-out clause that kicks in after a number of years.
If you are taking advantage of a ten year mortgage, contact us today for a fixed fee remortgage quote.