The vast majority of homeowners aren’t aware that they can fix their mortgage payment for longer than five years. And more than one-third of homeowners would consider fixing their mortgage for ten years, given the option. The majority of homeowners confirmed that a 10-year fixed-rate mortgage would give them stability and peace of mind.
Recent consumer research has revealed changing attitudes towards borrowing. Flexibility is no longer a priority and borrowers would rather enjoy long-term financial stability. This could mean a rise in 10-year fixed-rate mortgages.
The poll revealed that over a third of homeowners would be happy to fix their mortgage for a decade. With interest rates currently at an all-time low, this is great news for borrowers. Fixing their rates for as long as possible could allow them to pay off their mortgage faster and with lower interest and fees.
Another common reason for wanting to fix their mortgage for a decade is to ensure they know what their monthly expenditure will be. This was one of the most common reasons for wanting a long mortgage term. Another reason is the belief that mortgage rates are set to increase.
If you are due to remortgage, or you’re thinking about getting on the property ladder, you might be curious about the option to fix your mortgage payments for a long period. As more and more lenders start to offer this type of product, working with a mortgage broker is the best way to find them.
Lenders are keen to offer this type of lending product, as it demonstrates an ability to plan ahead effectively, and shows that the borrower is planning for the long-term. Not everyone will be eligible for this type of lending, and it’s important to consider the implications of fixing your rate for such a long time.
The 10-year fixed-rate mortgage is ideal for those looking for some financial stability. If you expect your life circumstances to change and want some stability during this time, this type of long-term mortgage can help.
Borrowers with children who are heading to university might benefit from the stability offered by a fixed-rate mortgage. Those approaching retirement age can also benefit from fixed rates. And when you consider that you might avoid paying to remortgage 2-3 times during the fixed period, there are considerable savings to be found.
The financial stability that comes with a long mortgage term has an obvious trade-off. You won’t enjoy the same flexibility that comes from being able to remortgage and switch to a better deal. If interest rates fall again, you could miss out on significant savings.
You also need to consider if you plan to move home in the next decade. If you’re planning to move house, this isn’t the right option for you, so think carefully about your future plans. Exiting a fixed-term deal part way through the term can be very costly, as lenders will charge early repayment fees to make up for their loss.
If you’re interested in finding a decade fixed-term mortgage, get in touch with Niche Mortgage Info today, we can help you to navigate the best deals.