Lenders in the UK think 10 year mortgage deals are set to become popular
Ten year mortgage deals look set to become more popular among home movers and those remortgaging in the UK as two major lender announced new long term products.
The lenders, Lloyds Bank and the Halifax, believe that borrowers are looking for more certainty going forward and are looking beyond the typical two year products and increasingly beyond five years.
The new mortgage deals from Lloyds have with and without fee options. They come with a 0.20% discount for Club Lloyds customers, plus an additional 0.20% discount for these customers available until 19 August 2018.
Examples of the 10 year fixed rates include remortgages at 2.42% with 60% LTV and £995 fee, including 0.40% discount and 2.64% with 75% LTV and £995 fee including 0.40% discount.
For home movers the Lloyds products include a 2.64% deal with 60% LTV and £995 fee, including 0.40% discount and 2.84% at 75% LTV and £995 fee, including 0.40% discount.
‘We’re seeing customers looking for longer periods of certainty when it comes to mortgage payments. Our new 10 year fixed mortgages will help provide remortgage customers and home movers with greater certainty with budgeting over the longer term,’ said Andrew Mason, Lloyds Bank mortgage products director.
With the Halifax, which is part of the Lloyds Banking Group, the new fixes are available at 60% LTV and 75% LTV for loans between £25,000 and £1 million, including options with and without fees.
Home mover rates start at 2.44% at 60% LTV with a £995 fee and 2.59% with 75% LTV and £995 fee, while for remortgage customers the rates begin at 2.69% with 60% LTV with a £995 fee and 2.89% with 75% LTV with a £995 fee.
‘Many home owners are looking for certainty with their mortgage payments over the longer term to give more peace of mind when it comes to their monthly outgoings,’ said Andy Bickers, mortgages director at Halifax.
‘We are always coming up with new ways to meet the needs of mortgage customers and bolstering our existing range of two and five year fixed rate products with these new, competitively priced 10 year fixes,’ he explained.
He pointed out that customers can also benefit from £500 to spend on Halifax’s new Mortgage gift site if they apply for a qualifying mortgage by 12 August. Following the completion of their mortgage, customers will be given login details to access the site and choose from a range of 40,000 items, including household appliances, garden furniture and family days out.