With the Brexit deadline of October 31st fast approaching, uncertainty continues to loom over the UK’s housing market. As a result many homeowners and would-be homeowners may be looking to an extended fixed rate mortgage deal to help them weather any potential property or political storms.
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And while five, and even ten-year fixed rate mortgages have been around for some time, a raft of new lenders are upping the ante by offering 15-year-fixed rate mortgages.
In July, Virgin Money debuted a number of 15-year-fixed rate residential mortgage deals offering Loan-to-Values (LTVs) of up to 90 per cent. These are as follows:
- 15 year fixed rate at 65 per cent LTV at 2.55 per cent with £995 product fee
- 15 year fixed rate at 65 per cent LTV at 2.89 per cent with no product fee
- 15 year fixed rate at 75 per cent LTV at 2.75 per cent with £995 product fee
- 15 year fixed rate at 75 per cent LTV at 2.99 per cent with no product fee
- 15 year fixed rate at 90 per cent LTV at 3.75 per cent with no product fee
Commenting on the move at the time, Andrew Asaam, Director of Mortgages at Virgin Money, said:
“Fixed rates of longer than 10 years are not generally available in the UK market but, given the economic backdrop, they can be a perfect choice for borrowers who are looking for longer interest rate certainty.
“We are delighted to continue our tradition of innovation by adding them to our range, giving customers the option to take advantage and lock in the low rate environment for an extended period.”
Yorkshire Building Society (YBS) followed closely on Virgin Money’s heels offering buyers a 2.79 per cent 15-year fixed rate on a 65 per cent LTV, and a 3.65 per cent 15-year fixed rate on a 90 per cent LTV.
Commenting Charles Mungroo, senior mortgage manager at YBS, told the Financial Times:
“With continued political and economic uncertainty, borrowers’ appetite for securing longer-term deals shows no sign of slowing
“We hope the introduction of the new 15-year range gives more choice to those looking for peace of mind that their monthly mortgage repayments won’t change for a significant number of years.”
Like any form of borrowing it’s important to look through terms and conditions carefully and work out what this rate equates to in terms of monthly repayments, and what exit costs are involved should you consider switching to another deal. You may also want to ask lenders if your fixed-rate mortgage can ported – transferred – to a new home should you decide to sell up and move.