10-year fixed rate mortgage deals hit record high

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The number of 10-year fixed rate mortgages has hit 157 options which is the highest level since 2007.

The average rate charged on a 10-year mortgage stands at 3.01% which is a 0.09% year-on-year decline.

Rachel Springall, finance expert at Moneyfacts, said: “Borrowers may well be thinking of different ways to safeguard themselves from potential rate fluctuations in the market, or even for some peace of mind during a period of economic uncertainty.

“Thankfully, lenders have expanded their mortgage range to accommodate consumers searching for a lengthier fixed term – including a 15-year mortgage launched by Virgin Money within the past fortnight.

“A decade-long fixed rate mortgage is no doubt a big commitment, so borrowers must feel confident that their circumstances are unlikely to change to avoid the expense of refinancing earlier than expected.

“There is a much larger choice of mortgages within the five-year fixed market and these should ideally be considered as an alternative.

“As with any mortgage, it is important that borrowers weigh up the overall true cost of any deal and make every attempt to overpay their mortgage to reduce the amount they owe – especially if they lock into a low rate.”

This news comes as Newcastle Building Society becomes one of the latest lenders to enter the market.

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