Sharp rise in 10-year fixed rate mortgage deals

The number of 10-year fixed rate mortgage deals on the market is continuing on a sharp upward trajectory to meet rising demand for longer-term home loans, a new study shows. Research from Moneyfacts reveals that the number of 10-year fixed rate mortgage deals on the market is increasing rapidly Shorter term fixed rate mortgages have been the favoured option for borrowers for many years, but the historic low rates on offer in today’s market means that fixing for longer periods is definitely an attractive offer, hence the rise of the decade-long fixed rate. In January 2014, there were just eight 10-year deals to choose from, but by October that number had risen to 22, and just three months later, the figure today is 77. Along with an increase in choice, the interest rates being offered are also falling. The average rate fell from 4.23 per cent in January 2014 to the lowest average 10-year fixed rate deal ever, at just 4.17 per cent.   Number of 10-year fixed rate deals Jan-13:  15     Jan-14: 8     Oct-14:  22     Today: 77 Average 10-year fixed rate mortgage Jan-13: 4.58%     Jan-14: 4.23%     Oct-14:  4.98%   Today: 4.17% www.moneyfacts.co.uk   “The 10-year fixed rate bandwagon is…

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