Choice of decade-long mortgages has shrunk in past week, says website

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he choice of decade-long mortgages has been shrinking, according to a financial information website.

Some lenders have pulled 10-year fixed-rate products in recent days, Moneyfactscompare.co.uk said.

The average rate on a 10-year fixed mortgage has increased, from 4.99% to 5.06% since the start of April 2023.

On Tuesday, the website counted 159 deals that were available, down from 169 a week earlier, on May 16.

This move may influence other lenders to follow suit and reconsider their own propositions

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The total is still higher than at the start of May last year, when 129 products were available, although, at that time, the average rate on a 10-year fixed mortgage was significantly lower, at 3.21%.

Bank of England base rate rises have been pushing up borrowing costs generally and swap rates are also among the factors which influence mortgage pricing.

Rachel Springall, finance expert at Moneyfactscompare.co.uk, said: “Borrowers looking to secure a decade-long fixed mortgage may be disappointed to see a drop in product choice.

“When lenders withdraw from such a niche sector, it can be in reaction to interest rate volatility, or even down to demand.

“However, this move may influence other lenders to follow suit and reconsider their own propositions.”

Ms Springall added: “A decade-long fixed mortgage is a commitment, and consumers must be confident with the length of the term before they apply, as an early repayment charge would apply should they exit their mortgage early.

“Anyone considering a new mortgage would be wise to seek advice to go over the full package of any deal to find the right deal for them.”

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