The number of 10-year fixed rate mortgages available to borrowers has dropped in the last week, said Moneyfacts.

The financial information provider said that a number of lenders have pulled their decade-long fixed deals in the last few days, including Leeds Building Society, The Co-operative Bank and Platform.

A week ago there were 169 10-year fixes and now there are 159 on offer. However this is still up compared to a year ago when there were just 129 of the niche mortgage products available.

Rates up

The average rate on a 10-year fixed mortgage has risen from 4.99% to 5.06% since the start of April 2023. And this is significantly higher than last May’s average of 3.21%.

Rachel Springall, finance expert at Moneyfactscompare.co.uk, said: “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.

“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.

“A decade-long fixed mortgage is a commitment, and consumers must be confident with the length of the term before they apply, as an early repayment charge would apply should they exit their mortgage early. Anyone considering a new mortgage would be wise to seek advice to go over the full package of any deal to find the right deal for them.”