Is the longer term fixed rate remortgage regaining popularity?

At this time in 2008, it was not uncommon for homeowners to remortgage for up to 15 years.

Deals were available at around 5.99% until 2023 and included some hefty early repayment charges of between 5 and 7%.

The longer-term remortgage fell out of favour as borrowers opted for shorter terms that gave them more flexibility when mortgage rates began to fall. However, the situation in the economy today is different and a number of people are now driven by the need for security.

Mortgage and remortgage rates have been hitting record lows for the last couple for years and short-term deals are still available for just below the 1% mark. Speculation is wide that this cannot continue forever and mortgage rates will have to increase in line with the Bank of England’s policy changes.

In anticipation of consistent rate increases from now on, borrowers are again turning their attention to the longer term remortgage to secure paying a much lower rate for longer.

In response to an increase in demand, Accord Mortgages has launched a 10 year fixed rate option for up to 65% LTV at 2.69%.

Accord’s remortgage fix is portable, which eliminates a potential problem should you move house and means no ERCs. There’s also the option of making an annual overpayment of up to 10%, reducing the amount of interest you pay overall.

Find out whether longer-term, fixed rates remortgage deal is the best option for you by consulting a Deal Direct advisor.

We are available to chat online with you now or call us on 0800 048 8828.