The latest research from Moneyfacts has revealed that fierce competition in the mortgage market has pushed the average rate of a 10-year fix down to a record low.
According to Moneyfacts data, 17 lenders currently offer 10-year fixed rate products, a rise of four from last years 13 and only nine providers 2-years ago.
Currently, there are now 158 products on the market and the average 10-year fixed rate currently stands at a record low of 2.76%, a fall of 0.32% year-on-year from the 3.08% recorded in November 2018.
Darren Cook, finance expert at Moneyfacts said, “It appears that the two and five-year fixed rate markets are becoming saturated, meaning providers need to seek new avenues to attract new mortgage business. There are currently 17 providers competing in the 10-year fixed rate market, which is nearly double the number of mortgage providers that offered this term two years ago.
“There are 158 products currently available in the 10-year fixed rate market, however, 108 products are only available to LTVs of 75% and below, while only two products are available at maximum 95% LTV.
“It appears that the 10-year fixed rate market may be geared towards the remortgage and second-time buyer market, as first-time buyers who step onto the housing ladder at 95% LTV are likely to want to remortgage down a LTV tier or two to get better rates as soon as they are able, and a 10-year stretch may well be far too long.”