Moneyfacts research shows that the number of decade-long fixed rate mortgage products has grown nearly tenfold in the last five years.
In January 2014, the data shows, there were 16 10-year fixed rate products in the market. This has increased to 150 today.
Inverse to this trend is the average fixed rate for this category of mortgage. Five years ago, this stood at 4.61 per cent, whereas today it is 3.05 per cent.
It is notable that the average rate for a longer-term fixed rate is still significantly higher than it is for the two-year fix, which was reported to be at 2.51 per cent late last week. This, says Moneyfacts is because lenders must factor in longer-term fluctuations and higher swap rates.
Moneyfacts finance expert Darren Cook says: “In times of uncertainty, a decade-long fixed mortgage could be a safe-haven for borrowers looking to secure their mortgage payments over the longer-term. As consumers prepare themselves for another potential base rate rise this year, their thoughts will be on how to safeguard themselves from any increase in interest rates
“A 10-year fixed rate mortgage will need a lot of consideration, with borrowers looking at all the options to make sure this is the right choice for their individual circumstances. But perhaps, given the current uncertainty, now is the time to make a long-term commitment.”
He goes on to point out that many long-term products contain “hefty” redemption penalties, although 84 per cent of 10-year deals do have a porting option for those moving home within the mortgage’s term.