How does a 10 year fixed rate mortgage work?
A 10 year fixed rate mortgage guarantees the same mortgage payment for a decade, regardless of interest rate changes. This provides protection against rising costs but also means you won’t benefit if rates drop. Most 10 year fixed rate mortgage deals include early repayment charges (ERCs) if you want to leave before the full term ends. If you think you may move home or want more flexibility, a shorter fixed term may be more suitable. At the end of the ten years, you’ll usually move onto your lender’s standard variable rate (SVR), which is often higher. To avoid paying more than necessary, it’s a good idea to start looking for a new deal before your fixed term ends.
10 year fixed rate mortgage eligibility
Lenders have different criteria when deciding whether to approve a 10 year fixed rate mortgage. They will check that you can afford repayments now and in the future by assessing your income, spending habits, and any expected changes in your financial situation.
To improve your chances of getting the best 10 year mortgage rates, it’s a good idea to have the following ready:
- 3–6 months of pay slips
- 6 months of bank statements
- Proof of any benefits received
- P60 from your employer
- Utility bills
- Tax returns or accounts if you're self-employed
What happens when your 10 year fixed rate mortgage ends?
A 10 year fixed rate mortgage provides stability and protects you from interest rate rises for a decade.
Once the ten years are up, your lender will move you onto their standard variable rate (SVR), which is often higher than your fixed rate. To avoid this, you should remortgage or switch to a new fixed-rate deal when your existing deal ends.
If you need to leave your mortgage before the ten years are over, you may have to pay an early repayment charge (ERC), which can be costly.
Which is best, a 5 year or 10 year fixed rate mortgage?
A 10 year fixed rate mortgage offers long-term stability, which can be ideal for those who plan to stay in their home for a long time and want to avoid remortgaging frequently.
A 10 year fixed rate mortgage might be a good choice if:
- You want to protect yourself against potential interest rate rises for a decade
- You don’t want the hassle of remortgaging every few years
- You’re confident you’ll stay in your home for the long term
When you speak with L&C, we’ll search the market to find the best fixed mortgage deal for your circumstances.
What is the average 10 year fixed mortgage rate?
The interest rate you are charged depends on the specific mortgage deal you apply for. This is determined by factors including your lender, credit history, mortgage length, and how much equity or deposit you have.
Mortgage deals change frequently, so the average rate will fluctuate from day to day. However, you can use our online Mortgage Finder tool to check the latest rates on current deals that you might be eligible for.
