Compare 10 year fixed rate mortgages

Is it worth getting a 10-year fixed rate mortgage?

Choosing whether or not to fix your mortgage rate is a personal decision that will depend on your risk appetite, personal circumstances and need for certainty.

Variable rates can be cheaper, but costs go up and down, so you need flexibility in your budget in case repayments rise. If your budget is tight, you could be at significant risk of not being able to pay what’s owed. In extreme circumstances, you could lose your home.

Fixed deals often have higher rates to begin with, but you know what you have to pay for the length of the deal.

Longer fixes offer more certainty than shorter deals, but you’ll lose out if rates fall. You could also save substantially if they continue to rise.

A 10 year fixed rate mortgage might appeal if you would like the security of knowing you could afford your mortgage for the next decade.

If you decide to apply for a 10 year fixed rate deal, the mortgage provider then looks at your finances to determine if you can afford it.

If you’re planning to move soon, make sure any fix allows you to port your mortgage (take it with you). Otherwise, you may have to pay significant repayment fees.

You may be able to get a 10 year fixed rate mortgage with just a 5 or 10% deposit, but the more you're able to put down, generally the better deals you’ll have access to.

Some lenders may actually request that you have a deposit of at least 15% to 20%, while others want you to have 40% set aside.

Saving up for a deposit for longer can bring your interest payments down significantly, and since longer fixes typically charge more, this can tip the balance on whether a ten-year fix is a good idea.

If you want to move house before your 10 year fixed-rate ends, you’ll need to see whether the lender will let you port your mortgage. This is when you transfer the mortgage to your new home. 

If you’re not allowed to do this but still need to move before your deal has ended, you will likely face early repayment charges (ERCs). It's important to be aware of how much these will be when taking out a mortgage, as they can amount to thousands of pounds.

Even if you can port, there are drawbacks. If you’re moving up the property ladder, you’ll have to borrow the extra cash from your existing lender – this might force you to take a less favourable deal.

There also often needs to be no gap between the sale of your old house and the completion on the new one. Some lenders will let you sell first and then reclaim the ERC if you buy within 90 days. This is a high-risk strategy because missing the deadline is costly.

Think carefully about your financial circumstances and whether they have changed. You need to prove you can still meet the lender’s criteria when you port, so you might struggle to get the deal if your income has fallen.

It's worth checking to see what deals are available on the market. If you can find a significantly lower interest rate, you might be able to save more than the repayment fee overall.

A mortgage broker can explain mortgage deals and the different fees involved to help you decide what the right option for you is.