Long-term fixed-rate mortgages of 10 and 15 years have failed to take off in 2025
Long-term fixed-rate mortgages of 10 and 15 years have failed to take off in 2025, with a recent poll of mortgage brokers for Newspage reporting negligible take-up. LMS remortgage data also confirmed this.
While the Bank of England has cut rates, mortgage funding costs have risen, leaving specialist long-term fixes uncompetitive. Most borrowers are opting for the flexibility of two- to five-year deals.
More mainstream lenders boosting affordability have also undermined the model of ultra-long-term loans, which have traditionally enabled first-time buyers to borrow more. Borrowers can now often borrow more without fixing for 10 years. For example, HSBC has recently increased its income multiple to 5.5 times salary for many first-time buyers, while West Brom is offering first-time buyers 5.75% times salary mortgages for those earning over £75,000 per year.
Nationwide for Intermediaries has one of the most competitively priced ten-year fixes at just below 4.4%, but it is around 0.65% more expensive than its lowest two-year fix.
Aaron Strutt, Product Director at London-based Trinity Financial, stressed: “The overwhelming majority of borrowers are taking two, three and five-year fixes. Most are not interested in the ten or 15-year fixes unless they need an income stretch mortgage through one of the specialist lenders.
“Many of the banks and building societies do not even offer ten or 15-year fixes, so they are not that widely available. We are at the stage where many people think that a three-year fix is a longer-term option, and there is an assumption that rates will be cheaper in a few years.”
Taking a longer-term fix may make sense if you have a smaller mortgage or you do not like taking any risk, but for most people with larger mortgage loans, the premium for taking a ten-year fix is not worth it. Hardly any of our clients have taken longer-term fixes, and there has been very little interest in them.
Call Trinity Financial on 020 7016 0790 to secure a mortgage, book a consultation, or complete our mortgage questionnaire.
The information contained within was correct at the time of publication but is subject to change.
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