Borrowers facing drop in choice of 10-year fixed rate...

Homebuyers looking for a 10-year fixed mortgage for their property purchase are facing less choice, research suggests.

Analysis by Moneyfactscompare.co.uk has found that options in this already niche market have dwindled due to lenders pulling out of.

Leeds Building Society, The Co-operative Bank and Platform have pulled their 10-year fixed mortgage products over the past few days.

Over the past week the number of 10-year fixed mortgages has fallen from 169 deals to 159, the comparison website said.

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

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.

“Those borrowers who want peace of mind with their mortgage repayments may well be comparing both five-year fixed mortgages and even 10-year fixed deals amid interest rate uncertainty, but these average interest rates are around 2% higher than they were a year ago.

“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.”