Halifax has launched a selection of 10-year fixed rate mortgages targeted at home movers and borrowers switching from another lender.
The 10-year fixed rates are available at 60 per cent loan-to-value (LTV) and 75 per cent LTV on loans between £25,000 and £1m, including options with or without fees.
Home mover rates begin at 2.44 per cent at 60 per cent LTV and 2.59 per cent at 75 per cent LTV, both with a £995 fee.
Remortgage customer rates start at 2.69 per cent at 60 per cent LTV and 2.89 per cent at 75 per cent LTV, both with a £995 fee.
Andy Bickers, mortgages director at Halifax, said the “competitively” priced fixes bolster the existing two and five-year fixed rate products in an effort to meet the changing needs of customers.
He said: “We know that many homeowners are looking for certainty with their mortgage payments over the longer term to give more peace of mind when it comes to their monthly outgoings.”
Andrew Montlake, brand director at Coreco, said long term fixed rates can be a positive option for some customers but for others such a commitment may not be suitable.
He said: "It is always good to offer customers the choice of a longer term fixed rate, especially with the possibility of interest rates increasing.
"However, the reality is for 10-year fixed rates to be a success, lenders need to look at more flexible products rather than a full 10-year tie-in. That length can be too long for some customers as changes in life can require flexibility and short notice - for instance, some lenders offer a 10-year fixed rate with only a five-year tie-in."
Halifax is offering £500 to be spent on their mortgage gift site to customers who apply for a qualifying mortgage by 12 August.
rachel.addison@ft.com
