Borrowers looking for a 10-year fixed mortgage have less choice, due to lenders pulling out of this niche market, according to latest analysis from Moneyfactscompare.co.uk.
Moneyfacts points to the fact that Leeds Building Society, The Co-operative Bank and Platform have all pulled their 10-year fixed mortgage products over the past few days.
And over the past week the number of 10-year fixed mortgages has fallen from 169 deals to 159.
The average rate on a 10-year fixed mortgage has risen from 4.99% to 5.06% since the start of April 2023.
Moneyfactscompare finance expert Rachel Springall says borrowers looking to secure a decade-long fixed mortgage may be disappointed to see a drop in product choice.
“When lenders withdraw from such a niche sector, it can be in reaction to interest rate volatility, or even down to demand. However, this move may influence other lenders to follow suit and reconsider their own propositions.
She adds: “Those borrowers who want peace of mind with their mortgage repayments may well be comparing both five-year fixed mortgages and even 10-year fixed deals amid interest rate uncertainty, but these average interest rates are around 2% higher than they were a year ago”.
