Homeowners looking to lock their mortgage rate into a term longer than five years will be able to benefit from more competition in the market.
Data from Moneyfacts.co.uk shows that the number of seven-year fixed rate mortgage products rose by five month-on-month, increasing from 22 available on the 1 July to 27 on the 1 August. As well as this, during the same period there was an increase in 10-year and over fixed rate mortgage products, rising from 151 to 162.
Although the number of long term fixed rate mortgages remains lower than shorter fixed term products, the increase over the last month suggests that providers are becoming more willing to offer consumers the ability of locking their mortgage into an increasingly longer term.
A seven-year fixed rate mortgage is a good option for consumers wanting to lock their mortgage into a rate for a long period of time, but who don’t want the commitment of a 10-year term. During July, Post Office Money® entered this market offering a seven-year fixed rate mortgage at a rate of 2.32% (APRC 3.6%) fixed until 30 September 2026, which then reverts to 4.74%. The deal is for a maximum 75% loan-to-value (LTV) and charges £495 in product fees.
July also saw Virgin Money increase its long-term fixed rate product range by launching a range of 15-year fixed rate mortgage. This was the first time a 15-year fixed rate mortgage had been available to consumers in 10 years. The lowest rate the Virgin Money 15-year fixed rate mortgage offers is 2.55% on a 65% LTV while the highest rate of 3.75% is available on a 90% LTV.
Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.