Contractor friendly lender Leeds Building Society has launched the market-leading 10 year fixed interest rate at 2.75 percent.The mortgage comes with a £1,499 arrangement fee and is available to those with a 35 percent deposit (65 per cent LTV).
The number of 10 year fixed rate mortgages in the market have increased over the last 2 years while rates have seen a steady decrease.
Overpayments are available without charge of up to 10 percent of the outstanding mortgage balance each year.
The product is also portable – meaning if you wish to move and take the fixed rate with you to the new home you can providing you meet the lender’s conditions at that time.
Simon Butler, Associate Director at Contractor Mortgages Made Easy said: “Ten year fixed interest rates are still considered a niche product and these have historically been rare, it is clear that demand is encouraging new lenders to offer more long-term fixed rate products at such low pricing.
Most 10 year fixed mortgages tie borrowers to the deal for the full ten years, so it is important to decide whether extra flexibility is needed, like the likelihood of moving in the next ten years as the ability to transfer the mortgage to another home is assessed the same as a new application. The other alternative is to pay off the mortgage from the sale, usually incurring a hefty fee.
That being said, a decade long fixed rate mortgage can protect borrowers from higher interest rates and repayment costs in the future. Committing to a low rate which is fixed for 10 years may pay off when base rate rises.”
Leeds Building Society have developed an exclusive lending policy for contractors with Contractor Mortgages Made Easy. Borrowers are required to have 12 months of unbroken contracting experience with 2 years in their line of work and a minimum average daily rate of £218 over the last 12 months.
A 10 year fixed scheme may appeal to borrowers with around 10 years or so left on their current mortgage term and want to lock in an extremely low rate for the remaining term, or those who do not see themselves moving for the next 10 years and want to protect themselves from future interest rate rises.
The society also offers 10 year fixed rates at smaller deposit levels with 3.89 percent scheme available to borrowers with a 15 percent deposit.
Article By: Bradley George, Senior Mortgage Consultant at Contractor Mortgages Made Easy
Media Contact: Ratchelle Deary, Public Relations Manager
Tel: 01489 555 080