Borrowers want best fixed rate mortgage deals to be offered over longer terms.
When the Norwich & Peterborough Building Society launched their 10 year best fixed rate mortgage at 3.99 per cent advising, some brokers declared it would not be a success as borrower take up would be low. After just 2 weeks the N&P had to pull the lowest ever 10 year fix because of ‘unprecedented demand’.
While the N&Ps 10 year best fixed rate mortgage deal has been withdrawn, borrowers will still be able to find an alternative long term deal, although it is unlikely the rate offered will be quite as competitive as 3.99 per cent.
Among the remaining 10 year fixes are the Co-op Bank who offer a rate of 4.79 per cent for 75 per cent LTV with a £999 fee, or 4.99 per cent fee-free, both deals have an early repayment charge.
National Counties Building Society offer a 10 year fixed rate remortgage deal at 4.19 per cent, with £595 in fees. The deal runs to December 2021 and early repayment charges apply at 5 per cent until December 2017, after which time a 1 per cent reduction is applied per year until the end of the fixed mortgage term.
The Leeds Building Society also offer a 4.99 per cent 10 year best fixed rate mortgage to borrowers who have a 20 per cent deposit, the product has is a £999 fee and an early repayment charge will be applied which tapers down each year to 2022.
