Brokers believe 10-year fixed-rate mortgages will remain niche products despite strong demand for Norwich & Peterborough’s 3.99 per cent 10-year fix which has been withdrawn after strong demand.
The loan, available up to 75 per cent loan to value, is thought to be the lowest-ever 10-year fix.
Brokers say demand would rise if more low-cost options were offered but they will still only be suitable for a minority of borrowers. All Types of Mortgages managing director Dale Jannels says: “If borrowers know they will stay married for 10 years and will not move, a long-term fix is a good product but for many, these products do not offer enough flexibility.”
Chadney Bulgin mortgage partner Jonathan Clark says: “If we saw more 10-year fixes priced like that, there would be an increase in demand but most people fix for no more than five years and I do not see that changing.”