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theChuz

10 Year Fixed Rate Mortgages

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Looks to me like Yorkshire building society has stopped doing thier 10 year fixed rate - I cant see it on thier site anymore.

Who else do a fixed rate of 10 years at the moment?

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Yeah they took it off nearly just over a week ago. West Bromich Building Society went and upped their 10 year rate to 4.89% at the same time (it used to be 4.69%). Interesting!

Nationwide do a 10-year at 4.89% which you can overpay up to £500 per month - an attractive deal for those who borrow on sensible multiples.

I think the Woolwich also do a 10-year fixed but I've not seen it on their site yet.

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Yeah they took it off nearly just over a week ago. West Bromich Building Society went and upped their 10 year rate to 4.89% at the same time (it used to be 4.69%). Interesting!

Nationwide do a 10-year at 4.89% which you can overpay up to £500 per month - an attractive deal for those who borrow on sensible multiples.

I think the Woolwich also do a 10-year fixed but I've not seen it on their site yet.

Woolwich is a part of Barclays and we're proud to offer Woolwich mortgages.

http://www.barclays.co.uk/

D :)

Edited by Dames

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Woolwich is a part of Barclays and we're proud to offer Woolwich mortgages.

http://www.barclays.co.uk/

D :)

Cheers Dames. I never thought of the Barclays route. Silly me! :rolleyes:

I see the Woolwich website also lists the 10 year fixed so all is well with the world.

Kind regards

Cheston

P.S. Great link for the FSA, by the way!

Edited by Cheston Pelvis

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The Times Today

Rates tumble for long-term borrowers

By Joe Morgan

LENDERS this week gave a boost to borrowers looking to put down roots by offering the cheapest long-term, fixed-rate deals for years.

Woolwich’s ten-year, fixed-rate deal of 4.67 per cent is the lowest on the market, while Norwich & Peterborough Building Society has reduced the interest rate on its ten-year fix to 4.68 per cent.

Jonathan Cornell, of Hamptons Mortgages, the broker,says: “These long-term fixes offer great value. If you look at the average lender’s standard variable rate (SVR) over the past ten years, 4.67 per cent looks good value.”

Homeowners who want to stay put will be particularly attracted to these deals. However, signing up for a fix over a period as long as ten years has its drawbacks. “Most of our clients want short-term deals,” Mr Cornell says. “Events such as divorce or redundancy can have a big impact on a borrower’s circumstances, and if you decide to repay early you will face onerous penalties.”

The Norwich & Peterborough and Woolwich deals include high early repayment charges. Woolwich inflicts a 4 per cent charge until May 31, 2016, while the Norwich & Peterborough enforces tiered early repayment penalties that start at 5 per cent for the first seven years and drop to 2 per cent in year ten.

This week the Bank of England’s Monetary Policy Committee (MPC) left the base rate unchanged at 4.5 per cent. The level of swap rates indicates that the money markets are now less certain of the need for an interest-rate cut and this has pushed up the pricing on some two-year fixes.

For example, Northern Rock this week raised the interest rate on its two-year fix to 4.55 per cent. Woolwich’s two-year fix, priced at 4.69 per cent, has been withdrawn and replaced with a 4.79 per cent offering.

“This will be a blow to first-time buyers who like the security and peace of mind that comes with fixed-rate deals,” says Ray Boulger, senior technical manager at John Charcol, the mortgage broker.

Halifax and Abbey have recently launched competitive two-year fixed-rate deals, priced at 4.45 per cent. But these will be appropriate only for first-time buyers who borrow more than £200,000 as they both come with a £699 arrangement fee.

Mr Boulger says that homeowners looking for the lowest fixed-rate deals should play a waiting game. He highlights Nationwide Building Society’s lifetime tracker mortgage, which has a “drop lock” facility that allows borrowers to switch to a fixed-rate deal without incurring early repayment charges. The deal is priced at 5.29 per cent on a loan-to-value ratio of 90 per cent to 95 per cent.

Mr Boulger concludes: “The market has not yet factored in the expectation of any significant falls in interest rates, which will result in lower fixed-rate deals in the future.”

However, James Cotton, of London & Country Mortgages, another broker, says that it is pointless for borrowers on SVRs to delay switching. They will make far greater savings by immediately ditching SVR offerings, which are typically priced at 6.5 per cent.

Analysis

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