Despite mortgage rates being at their lowest level for years, two increases in the base rate in under a year, have prompted many mortgage holders to consider their options. Some providers have started to offer 10-year fixed rate mortgages, guaranteeing a consistent payment for a decade.
Recent research1 revealed that over half of respondents to their survey (56%) are concerned about interest rate increases. A third of homeowners with mortgages would consider a 10-year fixed product. One of the driving forces for considering this long-term, fixed mortgage is the desire for financial stability. Over two thirds (68%) of respondents cited financial peace of mind as a prime factor for favouring a long-term fixed product.
As with all things, there are pros and cons associated with locking into a long-term fixed rate mortgage. These types of mortgage don’t suit everyone. It really depends on your personal circumstances and finances; so, make sure you speak with a mortgage broker before making any decisions.
As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.