Ten-year mortgages have always been rare beasts in the UK. Most Britons have either gone for variable-rate mortgages – often linked to the base rate – or ‘fixed-rate’ deals where the rate is only fixed for two or three years.
However, other countries take a different approach. For instance, in Germany the market is split between variable-rate mortgages, medium-term fixed-rate mortgages and long-term fixed-rate mortgages. In America fixed-rate deals of 15 or 30 years are standard.
The good news is that banks have begun broadening the number of longer-term deals available in the UK. With long-term interest rates starting to [...]
Want to read this article now?
Already a MoneyWeek subscriber? Please log in below.
Not a subscriber? Sign-up now for a 4 week FREE trial to get instant access.