The number of available ten-year fixed-rate mortgages has increased from 8 to 120 in recent years, but tying your money away for such a long period has its risks. The main risk being that if you need to exit the deal during the term, there will be significant early repayments charges. The upside being that the monthly repayments will not change, for good or bad, during the 10 year term.
Key Takeaways:
- New figures show that while there were just eight ten-year fixed-rate products available three years ago, there are now more than 120 such deals to choose from.
- Even with a slight increase in the average rate, a ten-year fix could give you the peace of mind of knowing your repayment will not change between now and 2027, whatever happens.
- Most decade-long deals tie you in for the full term. If you need to exit during that time, you could face hefty early repayment charges. It is vital you weigh up whether you will need flexibility in the decade ahead.
“Most decade-long deals tie you in for the full term. If you need to exit during that time, you could face hefty early repayment charges. It is vital you weigh up whether you will need flexibility in the decade ahead.”