West Midlands based building society The West Brom have announced that they are launching 10 year fixed mortgage products, something that that most lenders do not offer and something that could be a massive game changer for buyers and remortgagers.
With the Bank of England base rate increasing to 0.25% earlier this week, it has stirred up a conversation around mortgage interest rates and fixed mortgages. For most mortgage customers who choose a 2 or a 5 year fixed rate, the increase to the BOE base rate won’t make much of a difference compared to others who have opted to stay on tracker mortgages.
Where 5 year fixed mortgages have historically been the safest route forwards, the rate change has made lenders and customers alike think about possible rate increases in the future and building societies like the west brom have decided that they want to help clients out by offering some more safety and security with their chosen mortgage.
Some of the features of these new mortgages are as follows: At 80% LTV, rates start from 2.54% with a £999 completion fee and £250 cashback, with early repayment charges applying during the whole 10-year term. Alternatively, a rate of 2.84% is available with no completion fee, £500 cashback, and no early repayment charges after five years.
What is West Brom saying?
Richard Scott, representative for the West Brom intermediaries, said: “Following the recent increase of the Base Rate, there are concerns over inflation and how this may hit borrowers in 2022. We’re seeing a trend of borrowers wanting peace of mind on their monthly repayments for an extended period, beyond the current two-year and five-year fixed offerings. Adding 10-year fixed rates to our current range provides further options for borrowers in the long-term mortgage market. Some of the products also include a break option once the borrower is five years into their fixed rate mortgage term, where the borrower will not have to pay an early repayment charge, providing more flexibility for those who may want to switch at the half-way point.”
If you or anyone you know is looking to remortgages or purchase and wants to discuss fixing your mortgage, please feel free to give our friendly advisors a call to go through everything.