UK: Lloyds and Halifax announce new 10-year fixed rate mortgages

Fixed-rate mortgage deals usually last for either 2 or 5 years, after which customers tend to be switched onto a mortgage with a more expensive variable rate.

Many borrowers then take initiative to quickly switch to a better deal. Yet two of the UK’s most prominent lenders, Lloyds Bank and Halifax, have both launched 10-year fixed rate long-term mortgages.

They target long-term homeowners who won’t have to go through the effort of remortgaging in two or five years’ time, which will also provide them with increased certainty that their future repayments won’t change.

RFi Group data does indeed show an increase in homeowners preferring long-term fixed rates on their mortgages in the last few months, rising significantly from 23% to 27% across all UK mortgage holders.

Both Lloyds Bank and Halifax now offer 10-year fixed rates starting at less than 2.5% with a £995 fee, joining HSBC, Barclays, and several other providers that offer similar deals.

To obtain these rates until 2028, customers of Halifax will need a 40% deposit or equity in their property and be a home mover, while Lloyds’ cheapest 10-year deals are only available to remortgagers with a Club Lloyds current account and 40% equity in their property.

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