Customers seeking a 10-year fixed mortgage deal are faced with a shrinking range of options as lenders retreat from this part of the market.

Recent analysis by Moneyfactscompare.co.uk shows a discernible downturn in the provision of these decade-long fixed agreements.

Several lenders, including Leeds Building Society, The Co-operative Bank, and the Co-op’s intermediary arm Platform, have recently withdrawn their 10-year fixed mortgage products.

Consequently, the number of 10-year fixed mortgages has decreased from 169 to 159 deals over the past week alone. Concurrently, the average rate on a 10-year fixed mortgage has risen from 4.99% to 5.06% since the beginning of April 2023.

The data shows a continuous rise in the average 10-year fixed rate from 2.97% on 1st May 2021, to 3.21% on 1st May 2022, and a substantial leap to 4.99% by 1st April 2023. The number of 10-year fixed mortgages has also shown a fluctuating trend, rising from 125 in May 2021, to 129 in May 2022, and then 168 by April 2023.

Rachel Springall, finance expert at Moneyfactscompare.co.uk, expressed concern over the current market trends: “Borrowers looking to secure a decade-long fixed mortgage may be disappointed to see a drop in product choice. When lenders withdraw from such a niche sector, it can be in reaction to interest rate volatility, or even down to demand.”

She further added that the current developments could potentially prompt other lenders to reconsider their offerings. For those desiring stability in their mortgage repayments amid interest rate uncertainty, the average interest rates are approximately 2% higher than they were a year ago.

“A decade-long fixed mortgage is a commitment,” Springall warns, “and consumers must be confident with the length of the term before they apply, as an early repayment charge would apply should they exit their mortgage early. Anyone considering a new mortgage would be wise to seek advice to go over the full package of any deal to find the right deal for them.”

Article sourced from https://theintermediary.co.uk/2023/05/10-year-fixed-rate-mortgage-options-declining/

Mc Daid Mortgages do not accept responsibility for any advice provided or opinions expressed with this article. This is for information purposes only

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