Even more 10 yr best deal mortgage products launched by lenders.
The number of competitively priced 10 yr best deal mortgage products offered by lenders has increased. Various banks and building societies have launched new 10 year fixed rate mortgage deals including the cheapest ever at 3.99 %, which was so popular with borrowers that is was withdrawn 2 weeks after its launch.
When the new 10 yr products were launched mortgage brokers predicted that few borrowers would be interested in such long term deals but, the popularity of the N & P 10 yr fixed rate deal shows just how wrong brokers were. The Co-operative have since also launched a 10 yr best deal mortgage along with the Yorkshire Building Society.
Although rates have become more attractive for long term deals they do not suit all borrowers as they come with disadvantages. Home-owners find they have less flexibility with a 10 yr deal and difficulties can arise when choosing to move home before the end of the fixed term. Most lenders will allow borrowers to take their existing mortgage with them however, some can refuse borrowers this option if it does not meet the lender’s borrowing criteria.
Last year the Financial Ombudsman Service reported an increase in the number of complaints by home-owners whose application to move their mortgage was declined as the lender had tightened their criteria since the deal was agreed. There are also concerns that more home-owners will face big penalties if they need to exit a10 yr best deal mortgage deal early.
