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All you need to know about a 10 year fixed rate mortgage

A 10 year fixed rate mortgage is a home loan which offers the same guaranteed rate for a decade. And unlike standard variable rate mortgages, it won’t be affected by any changes in the Bank of England base rate.

The major plus point of signing up to such a long term fixed lending rate is that you will know precisely how much your mortgage repayments will be each month for 10 years! While the base rate is at a record low, it’s a good time to think about choosing a fixed mortgage.

But on the other hand, a decade is a long time and circumstances can change. If you think you might want to switch mortgages at some point, or move home, make sure you choose a package which allows for this without incurring high charges.

The Britannia is offering a 10 year fixed rate mortgage at a lending rate of 5.29 per cent until October 2021. After the fixed term is complete, the rate will revert to 4.24 per cent (standard variable rate). It is available up to 75 per cent Loan to Value (LTV) for home purchasers, first time buyers and those looking to remortgage. The most you can borrow is £1 million.

The Co-operative has a flexible 10 year fixed deal at 5.69 per cent, also available up to 75 per cent LTV for home buyers, first timers and remortgagers. After the fixed term is over, the rate will move to 4.24 per cent (standard variable rate) for the remainder of the mortgage. The maximum amount that can be borrowed is £1 million. Subject to lending criteria, this mortgage is portable.

Leeds Building Society has the 10 year Direct Mortgage which is fixed at 5.99 per cent up to 80 per cent LTV. At the end of the fixed period the loan will have a standard variable rate of 5.69 per cent. This mortgage is available for home purchasers, first time buyers and remortgagers and a maximum of £750,000 can be borrowed.

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