Leeds Building Society and Norwich & Peterborough have both changed their 10-year fixed rate products in recent weeks, while Woolwich changed its 10-year fix in early August.
Leeds BS’ 10-year fixed rate product is available at 4.97 per cent, until 2016, up to 90 per cent loan-to-value (LTV). A completion fee of £649 exists on the product, with 10 per cent capital repayments allowed each year.
Stuart Fearn, product development manager at Leeds Building Society, said: “With market commentators predicting a further rise in Base Rate later this year, a 10-year best-buy fixed rate mortgage at 4.97 per cent offers outstanding value. This product delivers long-term peace of mind by providing protection against future interest rate increases combined with the flexibility to pay 10 per cent capital repayments each year without penalty.
“It is clear that customers want to lock in good value in a rising rate environment and this is an ideal opportunity.”
Norwich & Peterborough 10-year 5.58 per cent deal has been reduced to 5.28 per cent, available up to 90 per cent LTV, while its 5.83 per cent product, at 95 per cent LTV with a £399 reservation fee, has been reduced to 5.53 per cent. Its 5.78 per cent mortgage, at 90 per cent LTV, with free valuations and a reservation fee of £475, has also been reduced to 5.48 per cent.
Kim Barrett, proprietor at KS Barrett & Associates, said 10-year products provided borrower security. He explained: “With a 10-year fixed rate deal, borrowers get rid of the ability to be flexible, but are guaranteed rate security over a long period of time. A number of lenders, including the Woolwich have, over the past few months changed their 10-year offerings and they now represent good value for money.”
