Ten-year fixed rates
There has been good news for borrowers over recent weeks, as lenders have responded to falling funding costs by launching some record-low 10 year fixed rates.
Products that lock borrowers in for that length of time have not always proved popular, but the gap in margin between interest rates for 5 and 10 year deals has reduced significantly.
Certainly the prospect of protecting your mortgage payments for the next 10 years at a record low rate will be attractive to many, particularly in such uncertain times.
Borrowers need to be aware however that the majority of long term deals carry Early Repayment Charges for the length of the fixed period.
It is important therefore to consider any changes in circumstances that could occur over the next decade, and whether more flexibility is needed.
This type of deal is not suitable for everyone, but for the right person it could provide peace of mind for the foreseeable future.
Guild Mortgage Service, Provided by London & Country Mortgages