Any opinions expressed are the opinions of the authors only. We have taken reasonable steps to ensure that any information provided by The Motley Fool Ltd, is accurate at the time of publishing. While there is definitely less flexibility in a 10-year mortgage compared to a two- or even five-year mortgage, it could protect you from increases if interest rates soar in the short term. Ultimately, whether a 10-year mortgage is right for you really depends on your personal circumstances and your appetite for risk. Plus, if interest rates fall, you won’t benefit from any reductions as you’ll be tied in for the remaining mortgage term. You’re also likely to face fees if you want to pay off your mortgage earlier than scheduled too.
Well, don’t forget that by its nature, a 10-year mortgage lacks flexibility, and you’ll pay hefty penalties if you want to switch lenders. With that in mind, locking in an ultra-competitive 10-year fixed rate looks like a good deal, right? That potentially means a typical mortgage could rise by more than £1,000. After all, some mortgage brokers and analysts are predicting that by the end of the year, interest rates could increase five times. If you’re remortgaging or looking to move, these offers look enticing. Is it worth fixing your mortgage for 10 years? In fact, according to tech firm Twenty7Tec, searches for 10-year fixed-rate mortgages rose by 70% at the end of January. The flurry of 10-year fixed mortgages reflects an increase in interest from homeowners and home buyers. Leeds Building Society also offers two 10-year fixed-rate mortgages, one at 2.08% (up to 65% loan-to-value ratio) and another at 2.14% up to 75% LTV. If a 40% deposit is too high, a 25% deposit makes you eligible for a 1.77% 10-year fixed-rate mortgage (plus the £999 arrangement fee). However, you’ll need a minimum 40% deposit and have to pay a £999 fee. The mortgage is available to anyone moving home. Halifax has just launched a low-cost 10-year mortgage at 1.68%. Who else offers cheap 10-year mortgages?Ī number of lenders have introduced or lowered rates on their 10-year mortgages. You can still be penalised after five years, but you’ll be charged according to a sliding scale. According to mortgage brokers, this is higher than average. You’ll face a 6% early exit penalty if you want to leave the deal within the first five years. You’ll also need a 40% deposit (at least) and pay a £1,000 fee.īut that’s not all.
However, the 1.66% offer isn’t available to all home buyers – it’s only open to those remortgaging. The lowest rate ever offered by Lloyds was previously 1.99%. Previously, the cheapest mortgage on record was offered by TSB (1.74%).
What is the Lloyds Bank fixed-rate mortgage deal all about?Īccording to brokers, it’s the lowest fixed-rate deal ever seen on a 10-year mortgage.
0 kommentar(er)
