Santander launches lowest ever 10yr fixed rate mortgage

Santander have today launched what we believe is the UK's lowest ever 10 year fixed mortgage rate at 3.94%. The max LTV available is 60% and there is an arrangement fee of £995 but home buyers can also get £250 cash back and a free mortgage survey; remortgagers can choose one of those two options. Traditionally in the UK the longest term that a fixed rate can be achieved for is 5 years. Banks have always been nervous to lock themselves in for longer terms but consumers do seem to like them. The last 10 year fixed rate mortgage we saw at a competitive rate was from the Norwich and Peterborough back in Jan 2012 at 3.99% and it was withdrawn after 2 weeks due to overwhelming demand! Our advice therefore to anyone who likes the idea of 10 years of repayment security is to move quickly. Of course this residential mortgage is not open to everyone and with a max LTV of 60% it is clearly only suitable for those with a large deposit. This has long been a criticism of the banks' response to the Funding for lending scheme in that while they have lowered mortgage rates, they have also lowered the LTVs they are prepared to lend these rates at. Still, this isn't a very competitive sector of the market so we are still inclined to welcome this product to the market. Sadly we cannot help you with this mortgage as it is only available direct from Santander but if you are not successful in your application we do work with regulated mortgage brokers who can help you with your application were you to prefer a 5 year fixed rate instead. Just call us on 0845 1260350 or complete our Mortgage enquiry form here and we will call you.