New 10 Year Fixed Rate Mortgage From Skipton

Skipton Building Society has added a new 10 year fixed rate mortgage to its range, aimed at helping homeowners budget for the longer term.

This new long term fixed rate mortgage is available for up to 85% LTV and has an interest rate of 5.85%. There are no fees and free legals and valuations are available for remortgages.

Skipton’s Head of Products, Kris Brewster, said: “We think longer term fixes like this could offer an important alternative for those who are expecting to remain in their home over the longer term, who prefer to have payment certainty over a fixed term and value long term financial planning.

 ”10-year swap rates are close to their lowest levels ever, enabling us to offer a rate of 5.85% , which is a very cost effective proposition over a decade term for those customers suited to this kind of product.”

MoneyHighStreet comments:“Whilst the market expectations on when the Bank of England will raise the base rate are moving out further into the future, it will certainly rise at some point. When it does, homeowners on variable rate mortgages or those on fixed rate mortgages coming to an end, will be faced with higher monthly payments.

“For some, the extra outgoing on an already tight financial position will tip them over the edge and leave them facing debt problems and in a worse case scenario even repossession of their home.

“For others the extra cost will mean curtailing some of the ‘nice to have’ expenditure.

“Taking out a longer term mortgage, such as this 10 year fixed rate from Skipton, offers the opportunity to budget for a longer period, you will know what your mortgage outgoings will be for all that time. Of course this means your mortgage payments will be fixed whether the interest rates go up or down.

“You need to assess your own circumstances. You may feel opting for a short term fixed rate mortgage, or perhaps a tracker deal and taking advantage of the prevailing low interest rates, may be better financially for you at this point. This may be particularly so if you are planning to move in the short term. Examples to consider include Skipton’s

• 2-year fixed rate deal at 2.48% up to 60% LTV
• 2-Year Base Rate Tracker up to 50% LTV at Bank Base Rate plus 1.48% (currently 1.98%).

“Of course other providers also have some great mortgage deals that you might like to check out.”