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Five and ten year fixed rate mortgages

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If you’re looking for a five or ten year fixed rate mortgage, the market is very competitive at the moment. You can get a ten year fixed rate mortgage that charges less than 2.5%. Find out what’s on offer.

The best five year fixed rate mortgages

The most competitive five year fixed rate deals at lower loan-to-value limits come from high street lenders. But the best five year fixed rate deals at 90 and 95% loan to value are from relatively small building societies.

Smaller building societies can often be more flexible in their criteria when it comes to approving mortgages. So they can be a better bet if your situation is unusual. And by unusual, I mean that perhaps you’re self employed and haven’t been working for yourself for that long, or maybe you’ve changed jobs a couple of times in the last few years.

SAVVY TIP: Bear in mind that the smaller building societies often have a higher standard variable rate (SVR) than the big banks. This won’t be a problem if you’re able to switch to another fixed or tracker deal, but if your circumstances change and you don’t qualify for a preferential mortgage rate with your lender, you may end up on the SVR. You can find out how standard variable rates compare from one lender to another in my article.

David Hollingworth, of mortgage brokers London and Country, says: “The mortgage market is very competitive at the moment, which offers borrowers some opportunities against a backdrop of a good degree of uncertainty. Five year fixed rates are particularly popular, especially as they come at a relatively small premium to two year fixes.”

Here are the best buy five year fixed rate mortgages, as provided by London and Country.

Lender Rate LTV Fee Notes
5-year fixes
Barclays 1.83% 60% £999 Free valuation.

Free legal work for remortgages

HSBC 2.09% 85% £999 Free valuation & legal work for remortgages
Coventry 2.25% 90% £999 Free valuation.

Free legal work for remortgages

Hanley Economic 2.99% 95% £999 Free valuation

 

Ten year fixed rate mortgages

One mortgage lender, the Coventry Building Society, dominates the best buy table for ten year fixed rate mortgages. If you have a lot of equity so you only need to borrow 50% of your property’s value, you can get a ten year fixed rate mortgage charging less than 2.3%.

SAVVY TIP: The Coventry Building Society’s ten year fixed rate mortgage only charges an early repayment charge (ERC) for the first five years. So, if your circumstances change or interest rates come down and there’s a more competitive rate on offer, you can remortgage without having to pay a penalty.

David Hollingworth says that ten year fixed rate mortgages are competitive at the moment, but remain a relatively niche product, mainly because of the longer lock in. A few lenders offer ten year fixed rate mortgages that only have a five year lock in (such as the Coventry, outlined above). “These could be ideal for someone attracted to the idea of locking in at a low interest rate, but who is anxious about being tied in should their situation change.”

Most best buy ten year fixed rate mortgages charge fees of around £1,000 (the best five year fixed rate mortgages do as well). Virgin Money has a ten year fixed rate mortgage up to 95 per cent loan to value, which has no fee at all. It charges almost 5% interest, which is quite a leap compared to the lower loan-to-value mortgages, but it may appeal to some.

Here are the best buy ten year fixed rate mortgages, as provided by London and Country.

10-year fixes
Coventry 2.29% 50% £999 ERC for 5 years only.

Free valuation. Free legal work for remortgages

TSB 2.34% 75% £995 Free valuation & legal work for remortgages
Coventry 2.59% 85% £999 Free valuation.

Free legal work for remortgages

Coventry 3.05% 90% £999 Free valuation.

Free legal work for remortgages

Virgin Money 4.98% 95% £0 £300 cashback for purchases.

Free valuation & legal work for remortgages

How to choose the right mortgage

I’ve used a mortgage broker whenever I remortgaged, except one time when I stuck with the same lender because the broker told me they couldn’t find a better deal. I found it particularly useful when I was a first time buyer and when I moved house.

Not all brokers are the same. Some, especially those linked to estate agents, can be a bit hit and miss. They don’t all charge the same either. It’s not necessarily the case that you should go with the cheapest broker (you want someone who will be good value, who may not be the cheapest). But they should tell you at the outset exactly what they’ll charge and what you’ll get for that.

Related Articles:

How to find a good mortgage broker

Mortgages for over-65s – getting a mortgage if you’re an older borrower

What survey do you need if you’re buying a house? House surveys explained

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