10-year mortgage rates compete | moneyfacts.co.uk

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MONEYFACTS ARCHIVE. This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Published: 22/01/2019

Borrowers weighing up their mortgage options at the start of the year may be wondering which way to turn. After all, it's true that the typically favoured two and five-year mortgage rates are currently low compared with recent years, but amid heightened concern about future base rate rises and widespread uncertainty, many are seeking further security with their monthly payments – and could be turning to long-term mortgage deals as a result.

Happily, they now have plenty to choose from, and at historically low rates too, with our latest data revealing that now could be a great time to consider decade-long fixes. As the table below shows, the average 10-year fixed mortgage rate has decreased significantly over the past five years – despite edging up slightly since the start of the year – falling from 4.61% in 2014 to now stand at 3.05%.

Not only that, but the availability of longer-term fixed mortgages has increased at the same time, and now stands nearly 10 times what it was in January 2014. It's thought that this boost in competition is behind the recent trend of falling rates, as lenders compete for customers' business in an increasingly challenging landscape.

10-year fixed


Jan -16

Jan -18


Average rate





Number of products







"In times of uncertainty, a decade-long fixed mortgage could be a safe-haven for borrowers looking to secure their mortgage payments over the longer-term," explained Darren Cook, finance expert at Moneyfacts.co.uk. "As consumers prepare themselves for another potential base rate rise this year, their thoughts will be on how to safeguard themselves from any increase in interest rates."

Yet despite the latest downturn in rates, it's inevitable that 10-year mortgages will be priced higher than their shorter-term counterparts, as they have to factor in longer-term fluctuations alongside their own financing costs. But even here, the difference isn't stark – the average two-year mortgage rate currently stands at 2.51%, while the average five-year deal is 2.92%, just 0.13% lower than the average 10-year rate. For many, that slightly higher rate could be a more than adequate trade-off for double the length of security.

However, "borrowers must be aware that 10-year fixed rate mortgages are often accompanied by hefty redemption penalties, which require a borrower to be tied into the deal for the full length of the term," said Darren. "Yet currently, 84% of the 10-year fixed rate deals on the market offer some form of porting option for those who wish to move home during this period, allowing them to resume the mortgage on the same terms with the new property.

"Ultimately, a 10-year fixed rate mortgage will need a lot of consideration, with borrowers looking at all the options to make sure this is the right choice for their individual circumstances. But perhaps, given the current uncertainty, now is the time to make a long-term commitment."


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