Designed for people looking for long term fixed rate mortgages, 10 years fixed deals offer a guarantee that your mortgage repayments will remain stable in the medium to long term.
Whatever happens to interest rates during the next decade you will have the peace of mind of knowing exactly what you will pay on your mortgage each and every month.
Pros and cons of 10 year fixed rate mortgages
There are many advantages of fixed, 10 year mortgage rates. These include:
- The ability to budget as you know exactly what your mortgage payments will be
- The certainty that your repayments won’t rise even if interest rates increase during the 10 year fixed period
- The fact that they could save you money if interest rates were to rise significantly during the fixed period
However, there are also some downsides of 10 year mortgages with a fixed rate that you should take into account. These include:
- You could end up overpaying on your mortgage if interest rates remain consistently lower than the fixed rate you have taken
- 10 year fixed mortgage rates often come with ‘early repayment charges’ within the ten year period. This means that you will often face penalties if you to want to come out of your mortgage deal early
- Even the cheapest 10 year fixed rate mortgage can often be more expensive than many variable or tracker rates and you often pay a ‘premium’ for the certainty of a fixed rate mortgage deal
- 10 year fixed mortgage deals often have an associated booking or arrangement fee which is generally paid up-front or is added to your mortgage
Finding the cheapest 10 year fixed mortgage
If you’re looking for the best 10 year fixed mortgage rates for you then it's imperative you research your options.
As you're going to be committing to a single lender for a long time it's vital you compare 10 year fixed rate mortgage deals from as many lenders as possible in order to find the deal that works out the cheapest.
You can use our 10 year mortgage comparison table to compare 10 year mortgages with a fixed rate deals from all the lenders that offer this type of product.
When you do this, as well as comparing the interest rate of 10 year fixed rate mortgages, you should also compare the maximum ‘loan to value’ available on certain deals as well as the fees and charges you'll need to pay upfront, if you decide you'd like to overpay your mortgage during the fixed term, and if you want to break from your 10 year fixed mortgage before the tie-in period ends.
Once you've worked out which 10 year fixed rate deal will be cheapest for you overall and checked that you're eligible it's simply a case of applying.