10 year fixed mortgage rates set to increase.
The average price of a 10 year fixed rate mortgage had reached as low as 2.96% across the UK. However, the latest indications from the market point to this average currently rising to above 3%.
Why are 10 year rates increasing now while other rates are still being trimmed?
There are several contributory factors including:
- changes to long-term SWAP rates pricing
- the changing state of the UK economy
- hints of more rises in the base rate coming sooner rather than later
- government sponsored lending initiatives coming to an end
The end of cheap funding via government could have the most significant impact on long-term fixed rates. This is because the last drawdown is set for four years’ time so the window of opportunity to continue to offer record-low rates is closing.
What do buyers/borrowers need to do?
The advantage of a longer-term fixed rate mortgage is that it provides you with the security of knowing what your monthly repayment will be during that time. This could be a wise choice to make right now because of the level of economic uncertainty we currently find ourselves facing.
However, the only way to know for sure whether this type of mortgage matches your requirements exactly is to consult with Deal Direct.
Find out about your mortgage opportunities and compare your options with a member of our skilled team. We’re FCA regulated as well as being independent, which means we can fully guarantee to tailor our mortgage advice to serve your best interests.