{"id":1022406,"date":"2018-12-19T13:15:31","date_gmt":"2018-12-19T13:15:31","guid":{"rendered":"https:\/\/www.buyassociation.co.uk\/?p=1022406"},"modified":"2018-12-19T13:15:31","modified_gmt":"2018-12-19T13:15:31","slug":"seven-year-mortgages-another-choice-for-borrowers","status":"publish","type":"post","link":"https:\/\/www.buyassociationgroup.com\/en-gb\/2018\/12\/19\/seven-year-mortgages-another-choice-for-borrowers\/","title":{"rendered":"Seven year mortgages \u2013 another choice for borrowers"},"content":{"rendered":"

Yorkshire Building Society is the latest mortgage lender to recognise that for some borrowers a mid-length fixed rate would be a preferred choice. <\/strong><\/p>\n

While most mortgage borrowers are happy to opt for a two, five or 10 year mortgage term, YBS is now catering for customers that want long-term certainty without the decade-long lock in, with the offer of an interim seven year term product.<\/p>\n

According to Janice Barber, mortgage manager at YBS,<\/p>\n

\u201cFive-year fixes have been popular this year, and with the continued political and economic uncertainty borrowers seem keen to fix their rates for a period of certainty\u201d.<\/p><\/blockquote>\n

The society\u2019s introduction of a seven year term offers borrowers that are hesitant to commit to a decade long mortgage term, a viable and attractive alternative.<\/p>\n

More lenders offering a seven year term<\/h4>\n

Yorkshire is not the only lender offering this option; Skipton, Coventry Building Society and Virgin Money all offer a seven year mortgage term to customers, albeit with constraints on loan to value rations (LTV), but Yorkshire come out on top in the rate comparison.<\/p>\n

Yorkshire\u2019s rates start at 2.16% at 65% loan to value with a \u00a3995 arrangement fee and free valuation. Borrowers with a 25% deposit can access a 2.26% rate and those with a 15% deposit a rate of 2.36%.\u00a0 In comparison, Coventry requires a 50% deposit with rates starting at 2.09%; Virgin Money offers a fix at 2.37% for a 65% LTV and Skipton 2.43% at 60% LTV.<\/p>\n

With the possibility of another interest rate rise by the Bank of England<\/a> early next year, borrowers seeking to remortgage are weighing up their options. It is tempting for many to fix for longer and avoid having to worry about what happens with interest rates.<\/p>\n

Security can come at a cost<\/strong><\/h4>\n

Despite the benefits of long term security borrowers should bear in mind that peace of mind can come at a cost. For example, in 2010 Co-Op Bank offered a 10-year fixed at 75% LTV at 5.29%, today the average fixed rate stands at 2.50%, so borrowers tied into Co-Op\u2019s 2010 fixed rate are currently paying approximately \u00a33,600 per year more than they would be on today\u2019s rate.<\/p>\n

Unfortunately, there is no crystal ball to predict what is going to happen to mortgage rates in the next decade. However, with the current competition between lenders for new customers, it\u2019s likely that low rates, cash incentives and innovative new products will be around for a little longer.<\/p>\n

For borrowers struggling to decide between a five or\u00a010-year fixed rate deal, perhaps a seven year term is the answer.<\/p>\n","protected":false},"excerpt":{"rendered":"

Yorkshire Building Society is the latest mortgage lender to recognise that for some borrowers a mid-length fixed rate would be a preferred choice. While most mortgage borrowers are happy to opt for a two, five or 10 year mortgage term, YBS is now catering for customers that want long-term certainty without the decade-long lock in,… Read more »<\/a><\/p>\n","protected":false},"author":3380,"featured_media":4802,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[26],"tags":[25,341],"acf":[],"_links":{"self":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts\/1022406"}],"collection":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/users\/3380"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/comments?post=1022406"}],"version-history":[{"count":0,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts\/1022406\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/media\/4802"}],"wp:attachment":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/media?parent=1022406"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/categories?post=1022406"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/tags?post=1022406"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}