Ten year fixed mortgages look competitive

Long-term fixed mortgage loans may become more popular as borrowers look to secure their borrowing rates, suggest figures from Moneyfacts.

Moneyfacts highlights the loans fixing for the long-term and which are currently on the market, which they say do offer fairly competitive fixed rates.

Best rates come from HSBC, Derbyshire Building Society and Yorkshire Building Society all offering 5.89% fixed for ten, ten and fifteen years respectively.

Leeds and Holbeck and Marsden Building Society, Newcastle Building Society and Woolwich are offering 5.99% for ten years each.

Abbey is offering 6.09% for 15 years and Cheshire Building Society 6.15% for 25 years.

On a £100,000 repayment mortgage over 25 years, monthly premium would be £637.59 on a rate of 5.89%. If someone were on the standard variable rate of 6.5% (with potential to fluctuate) the premium would be £675.21. This difference of £37.62 a month would mean paying £11,286 extra over 25 years.

"Long term fixed rates are fairly competitive at the moment," said Samantha Owens, mortgage research editor at Moneyfacts.

"The rates do tend to be higher than those of other mortgage types and shorter fixed terms, but they do give borrowers peace of mind in knowing that their payments will not increase, even if base rate continues to do so."