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Property News > Lenders in the UK think 10 year mortgage deals are set to become popular
Lenders in the UK think 10 year mortgage deals are set to become popular
Two major lenders have announced new long term products in anticipation of a rise in popularity of ten year mortgage deals. Both Lloyds Bank and Halifax believe that borrowers are seeking more certainty than is currently offered by the typical two year and five year products currently sold. The new mortgage deals from Lloyds come with the option to include or exclude fees, with a 0.20% discount for Club Lloyds customers, as well as an additional 0.20% discount which is available up until 19 August 2018. Examples on offer for those looking for ten year fixed rates include remortgages at 2.42% with 60% loan-to-value (LTV) and £995 fee, including 0.40% discount, or 2.64% with 75% LTV and £995 fee including 0.40% discount.For those moving home, the Lloyds products include a 2.64% deal with 60% LTV and £995 fee, including 0.40% discount, and 2.84% at 75% LTV and £995 fee, including 0.40% discount.‘We’re seeing customers looking for longer periods of certainty when it comes to mortgage payments. Our new 10 year fixed mortgages will help provide remortgage customers and home movers with greater certainty with budgeting over the longer term,’ said Andrew Mason, Lloyds Bank mortgage products director.Meanwhile with the Halifax, which is part of the Lloyds Banking Group, the new deals are available to customers at 60% LTV and 75% LTV for loans between £25,000 and £1 million. These products also include options with and without fees.For home movers, rates start at 2.44% at 60% LTV with a £995 fee, and 2.59% with 75% LTV and £995 fee. Remortgaging customers can secure rates beginning at 2.69% with 60% LTV with a £995 fee, or 2.89% with 75% LTV with a £995 fee.‘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,’ said Andy Bickers, mortgages director at Halifax.‘We are always coming up with new ways to meet the needs of mortgage customers and bolstering our existing range of two and five year fixed rate products with these new, competitively priced 10 year fixes,’ he explained.He also pointed out that Halifax are offering customers £500 to spend on their new mortgage gift site following the completion of their mortgage, provided their application is submitted by August 12th. Customers will then be able to choose from a range of 40,000 gifts, including family days out, garden furniture and household appliances.