Barclays have made mortgaging history, chopping the interest rates of a ten year fixed rate mortgage to below 3 percent.
This is a result of banks trying to fish the market of people desperate to lock into low fixed rate mortgages for as long as possible, as a result of the fear that variable rate mortgages will suffer at some point this year as the Bank of England interest rate is set to rise.
Trying to trump its rivals, Barclays have offered ten years fixed rate for 2.99 percent. However, there is also the catch of a heavy deposit. To qualify for this ten year deal, borrowers will have to pay a 40 percent deposit on the property. On top of this, the borrower will have to pay a £999 fee.
According to Moneyfact’s figures, the number of ten year mortgage deals have hugely increased in number over the last year, surging from eight available products to 77.
However, Barclay’s is the cheapest at the moment, as ten year fixed rates are more likely to have higher interest rates than five year fixed rates or variable rate mortgages.
Fixed rate mortgages have the benefit of cushioning the borrower against rises in the base rate of the Bank of England, and they will know exactly how much they will have to pay.
But with variables such as deposit amounts and fees, make sure you shop around for a mortgage and find one that is right for you and your situation.
