Woolwich offer a 10 year fixed rate mortgage deal.

Through their intermediary the Woolwich, Barclays are offering a new 10 year fixed rate mortgage deal, the mortgage rate is fixed until February 28 2022. The deal is made available at 4.99 per cent with a minimum loan value of £5,000 for up to 70 per cent of LTV to a maximum loan value of £1 million.

The Woolwich's 10 year best mortgage fixed rate deal will allow capital repayments up to 5 per cent per year without any penalty during the fixed rate period. The mortgage offer comes with free legal fees of £200, a free valuation and cash-back for remortgages. A mortgage arrangement fee of £1,499 will be charged and redemption fees of 6 per cent apply for repayment during the first 7 years, reducing to 3 per cent for years 8 to 10.

When looking at how the 10 year mortgage product fits in to the market, Deal Direct brokers commented saying that it is good for borrowers to have a spread of different mortgage product options.  This long term fixed rate mortgage favours borrowers who wish to be certain that their mortgage interest rate won't change for the entire first 10 years.  This is particularly appealing to some who fear that  interest rate rises are just around the corner.

Woolwich’s 10 year best mortgage fixed rate deal covers an area of the market previously not well served. With the BOE base rate at an historic low, many borrowers appear to like the idea of locking into a deal that takes advantage of the lowest point in the cycle and, while the arrangement fee is not insignificant, over 10 years it will have a lot less impact on the mortgage rate than it would have had on a shorter term deal.