Banks hike cost of 10-year mortgages
BANKS are increasing ten-year mortgage deal costs after the price of funding them almost doubled in three months.
The average ten-year fixed rate is now 3.2 pc, up from 3.12 pc in October.
On a typical £150,000 loan, this would increase monthly payments by £7 to £727.
Experts expect ten-year fixed deals to get even pricier as growing confidence in the economy increases the likelihood of an interest rate rise.
The cheapest ten-year deal is currently 2.49pc with TSB. It has a £995 fee and is available to customers with a 40 pc deposit. On a £150,000 loan, the monthly payments are £627.
By contrast, two and fiveyear fixed rates are still falling, says data firm Moneyfacts.
The average two-year rate is 2.35 pc, down from 2.38 pc three months ago.
And the average five-year fix is 2.95 pc, down from 3.02 pc.
Andrew Montlake, of broker Coreco, says: ‘It could only be a matter of time before we see two and five-year fixes go up.’