More lenders offering 7-year fixed rate mortgages
More of the banks and building societies have started providing seven-year fixed rate mortgages over the last month.
Barclays has launched a competitively priced rate and it is fixed at 2.07% until 30 April 2026. At the end of this period, it reverts to the lender's variable rate currently of 4.24%. The overall cost for comparison is 3.18% APRC representative.
The mortgage has a £999 arrangement fee, and applicants will need a 40% deposit to qualify. Early repayment charges apply for the fixed period, and the maximum loan is £1,000,000.
Aaron Strutt, product director at Trinity Financial, says: "Most borrowers lock into two or five-year fixes, but there are some excellent longer-term alternatives. If you have a 50% deposit Coventry for Intermediaries has the lowest seven-year rate and Virgin Money for Intermediaries has a selection of deals."
Representative example: A capital and interest mortgage of £250,000 payable over 25 years, initially on a 2.07% fixed rate until 30/04/2026 and then on a variable rate of 4.24% for the remaining 23 years, would require 86 monthly repayments of £1,068.18 followed by 214 monthly repayments of £1,273.63.The total amount repayable would be £365,660.30 made up of the loan amount, plus interest (£114,420.30) and £999 (product fee), £80 (final repayment charge), £35 (completion fee). The overall cost for comparison is 3.18% APRC representative.
The actual rate available will depend on your circumstances. Please ask for a personalised mortgage illustration.
Call Trinity Financial on 020 7016 0790 to secure a seven-year fixed rate mortgage
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