Record low 10-year fixed rate launches on Friday
This Friday will see the launch of the lowest-ever, 10-year fixed rate mortgage, from Coventry Building Society.
With a rate of just 2.39% this deal smashes the current lowest 10-year fix, 2.84% from Leeds Building Society, out of the ballpark.
The deal comes with a standard mortgage fee of £999, plus there is a fee-free option available at a highly competitive 2.64%.
However, the mortgage is only available to borrowers with an enormous 50% deposit or equity stake in their existing property, so it will not be accessible to many borrowers.
It also comes with early repayment charges for the term of the product. Borrowers looking to redeem before the product expires will pay 5% of the mortgage balance during the first two years, 3% for the next three years and 1% for the remaining term.
Kevin Purvey, head of intermediaries, said: “The fall in swap rates means we’ve an opportunity to offer these market-leading rates to people looking for long-term security in these uncertain times.”
Moneyfacts finance expert Rachel Springall added: “A decade-long fixed mortgage is becoming a growing trend amongst lenders who are providing borrowers with a long-term option to secure their monthly mortgage payments.
“This trend may well continue to grow in times of uncertainty, but borrowers must always work out the true cost of any deal and be sure that their circumstances will remain relatively unchanged for the next 10 years.”