Mortgage customers looking for long-term assurances over the rate they will pay could be interested in a marathon new deal from Skipton.
The ten-year fixed-rate offering will see homeowners pay 5.85 per cent with no product fees, allowing them to guard against the possibility of a rise in rates from the Bank of England’s Monetary Policy Committee.
It will remain fixed until the end of November 2021, meaning Brits will have foresight over how much they will be paying out for a considerable time.
The Bank of England has kept the base rate at a record low of 0.5 per cent for more than two years now and while there are no immediate signs that it is set to increase, some commentators have suggested that rising inflation could force the Committee’s hand.
Skipton head of products Kris Brewster said: “Base rate has been at an historic low of 0.5 per cent for an unprecedented 28 months now and many borrowers have therefore become used to lower-than-ever mortgage payments.
“These low interest rates are unlikely to be sustainable in the long term, though, despite the current turmoil in the market.”
In other news, those taking out a mortgage may be wise to do so in a new university town, with new Lloyds TSB figures showing that properties in these areas having risen in value by 70 per cent in the past decade.