Competition within the long-term fixed rate mortgage market has increased, with Yorkshire Building Society launching a range of 15-year fixed rate mortgages.
The building society, which already offers five, seven and 10-year mortgages, revealed it launched its new 15-year mortgage range in response to demand from borrowers for fixed rate mortgages over a significant number of years after its own data showed interest for decade-long mortgages had doubled year-on-year.
The range of Yorkshire Building Society 15-year deals starts from a rate of 2.79% available on a 65% loan-to-value (LTV) and up to 3.65% on a 90% LTV. The full range is:
Charles Mungroo, senior mortgage manager at Yorkshire Building Society, said: “Demand for long-term fixed rate mortgages is increasing year-on-year and with continued political and economic uncertainty, borrowers’ appetite for securing longer-term deals shows no sign of slowing down.
“We’re always looking at ways we can help borrowers and are keen to design and offer products that meet their needs. We hope the introduction of the new 15-year range gives more choice to those looking for peace of mind that their monthly mortgage repayments won’t change for a significant number of years.”
Last month, Virgin Money launched a range of 15-year fixed rate mortgages, which was the first time a mortgage of this term had been available to consumers since 2009. While Yorkshire Building Society is the second provider to offer mortgage rates fixed over a 15-year term, competition within the over five-year fixed rate mortgage sector has increased during the last few months. Research from Moneyfacts.co.uk shows that the number of seven-year fixed rate mortgages has risen from 22 available on the 1 July to 27 available on the 1 August. As well as this, there was a rise in 10-year and over fixed rate mortgage products during the same period, rising from 151 to 162.
Commenting on the introduction of the 15-year mortgage range from Yorkshire Building Society, Rachel Springall, finance expert at Moneyfacts.co.uk, said: “It’s fantastic to see another competitor enter such a niche area of the mortgage market. These new 15-year fixed mortgage deals from Yorkshire Building Society are not just competitively priced; they have a decent incentive package too.
“Borrowers looking to secure their monthly mortgage payments over the longer-term may well find these deals appealing, but they must be comfortable committing to the mortgage term. As with any deal, customers would be wise to weigh up the overall cost of their mortgage before they apply.”
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.