Last November we blogged about the pros and cons of long term fixed rate mortgages, which are attracting borrowers who want the more predictability of payments for longer periods of time.
And just a few days into 2015, the market has been given a serious stir by Barclays. The bank is beating off competition with the UK’s lowest ever 10-year fixed rate mortgage. Customers with 40% deposit can take advantage of Barclays’ offer of just 2.99% including a £999 fee. The product was previously available at 3.45%.
Good news for homebuyers who have the savings, and who seek long-term financial lockdown.
The choice is broadening for borrowers as lenders battle it out for their custom, thanks to a general market slow down. Also, with the Bank of England base rate rise not expected until early 2016, now is the time to shop about for some the suitable deals.
Keep an eye on the consumer financial press to find out who’s offering what deals at the moment. But we’re eager to see which lender will take even bolder steps.
As always, be aware of charges for early payment or borrowing more money. If you have any doubt that you’ll stay put for the next decade, you may face hefty fees if you can’t port (or transfer) your mortgage to a new property.
In the meantime, the buy-to-let market is also getting an injection of competition, with buy-to-let lender Fleet Mortgages releasing a product range including a two-year fixed rate at 2.79% on up to 65% LTV and 1% fee.
As well as selling products through its distribution channels (Business Mortgage Company, The Buy to Let Business, L&G Mortgage Club, Mortgages for Business, The Mortgage Trading Centre, Professional & Commercial and Solent Mortgage Services), the specialist lender will also work with the brokers.
Also, The Mortgage Works (TMW), Nationwide’s lending arm, has just announced a 10-year fixed rate mortgage for landlords, up to 75% LTV at 4.99% and a fee of £995.