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Some mortgage borrowers like long-term security and consistency, and to cater for this, there are lenders who offer long-term fixed-rate mortgages. But what exactly qualifies as a “long term” fixed-rate mortgage? What kind of deals are available, and which lenders are offering them? Read on to find out…
What is classed as a “long-term” fixed-rate mortgage?
Given that standard fixed-rate mortgages tend to come with two or five-year introductory rates periods, anything longer than this could be considered “long term”. Some lenders are offering seven-year fixes, a smaller number 10-year fixes, and a minority even longer than this.
At the time of writing (December 2023), the market is uncertain following the economic turmoil which began with the Government’s Mini Budget in September 2023. With rates currently on the way down from their peak, many lenders are reluctant to offer long-term fixes.
As a result, 10-year fixed-rate mortgages are difficult to come by without the help of a broker, and anyone looking for a longer fix than this will be limited to specialist products.
What is the longest fixed-rate mortgage available in the UK?
The longest introductory rates period available on a fixed-rate mortgage in the UK is 40 years, but only a small minority of lenders will even consider anything longer than 10 years.
Although 40 is the current ceiling, one UK mortgage provider has secured a license to offer 50-year fixed-rate mortgages, but these are not yet available at the time of writing.
Interest rates on long-term fixes
Average interest rates on 10-year-fixed-rate mortgages sit at 5.93% at the time of writing (August 2024). Anything with a longer introductory rates period than this is likely to be a specialist or niche mortgage product with a higher interest rate.
Interest rates on longer-term fixed-rate mortgages are typically higher than for shorter fixes, but since the economic uncertainty that began around the time of the Mini Budget, the difference between 10-year fixes and 2-5-year deals is less pronounced than it once was.
The exact interest rate you will end up with on a 10-year fixed-rate will depend on how much deposit you can put down and the strength of your credit reports, among other factors.
The cheapest long-term fixed-rate mortgage deals right now
The best interest rates on 10-year fixed-rate mortgages tend to be reserved for borrowers with lower LTVs, peaking at around 60% (40% deposit). There are, however, a range of longer-term fixed mortgages available for borrowers with lower deposit amounts too (5-10%).
Specialist mortgages fixed rates periods exceeding 10 years, such as Kensington’s Flexi Fixed for Term range, typically have higher rates and deposit requirements.
The mortgages listed in the table above are merely a snapshot of the market. You can compare rates and deals from these lenders and more for free on Teito.
How to compare rates and deals
You can compare rates and deals on long-term fixed rate mortgages for free on Teito. Once you have selected a deal you like the look of, one of our brokers will be on hand to offer bespoke advice, make sure you’re getting the best deal, and oversee your application.
Below you can decide whether to start by comparing rates yourself or set up a consultation with one of our brokers first:
Compare long-term fixed-rate mortgages for FREE
Advantages and disadvantages
The table below shows the pros and cons of taking out a long-term fixed-rate mortgage:
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ADVANTAGES |
DISADVANTAGES |
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Consistency: Your mortgage payments will remain the same for at least a decade, making it easier to plan and budget |
Inflexible: While there are flexible deals available, the most long-term fixes can make it more difficult to move house or remortgage |
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Long-term protection: If you are able to secure a good rate, you will never pay more than that while in your initial rates period |
Higher ERCs: If you do need to change your mortgage early, the early repayment charges tend to be higher the longer you fix in |
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Less hassle: If you were to take out a 10-year fix, you won’t need to worry about remortgaging for a decade or longer |
Risk of missing out: Rates can change a lot over the course of 10 years. If they were to significantly drop during your initial rates period, taking advantage of the better deals available can be far more difficult |
How much does a long-term fixed-rate mortgage cost?
If you have seen a fixed-rate mortgage deal you like the look of, enter the interest rate and term length into our calculator below, along with the amount you are borrowing and the tool will give you an idea of how much that mortgage could cost each month and overall across the term.
Remember to factor in any fees that your mortgage includes. The overall cost of the mortgage deal you take out is what is important, and most long-term fixes come with an upfront cost.
What is the longest you can fix into a buy-to-let mortgage for?
The longest introductory rates period for a fixed-rate buy-to-let mortgage is currently 10 years. These are far more difficult to come by than 2 or 5-year fixes in this market, so it is advisable to speak to a broker who specialises in buy-to-let if you are seeking a long-term deal.
One of the main differences between long-term fixed-rate buy-to-let mortgages and their residential counterparts is higher interest rates. Deposit requirements can be higher too.
You can compare buy-to-let mortgages for free on Teito, and we have brokers on hand who specialise in this area to offer support if you need a little help.
Why choose Teito for your mortgage needs?
You can compare long-term fixed rate mortgage deals for free on Teito and access support from a whole-of-market broker if you need help choosing the right product for you.
Here are just some of the reasons why our customers choose us:
- It takes seconds to access deals from across the whole market
- Our brokers are experts on long-term fixed-rate mortgages
- We are five-star rated on leading review websites
- You can secure an agreement in principle in minutes
Ready to compare long-term fixed-rate mortgages and take advantage of a free, no-obligation chat with an expert mortgage broker? Get started here.
FAQs
If your intention is to lock yourself into a mortgage deal for the long term, the main alternative would be lengthy variable rate mortgages, such as lifetime tracker agreements.
A lifetime tracker mortgage comes with an interest rate that is tied to an external marker - usually the Bank of England’s base rate - for the entire duration of its term. The rate you pay would move up, down or remain the same, in line with what the base rate is doing.
Lifetime tracker mortgages are difficult to come by at the time of writing, due to few lenders offering them - speak to a mortgage broker to find out whether they are an option for you.
You can read more about how fixed-rate mortgages compare to variable-rate mortgages through the link.
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.