The number of 10-year fixed rate mortgage deals on the market is rising, increasing from just 12 in November 2013 to 51 today, according to research from Moneyfacts.
In addition, in the last month the average rate fell from 4.98% to just 4.33%, the lowest level for a 10-year fixed rate deal ever.
Sylvia Waycot of Moneyfacts, said: “The two-year fixed rate mortgage is the favoured choice of many borrowers who like the structure of knowing what their monthly payments will be, but also the flexibility of a short term.
“However, while 10-year fixed rate deals may cost more per month than the current two or five-year fixed rates, over the life of the mortgage (bearing in mind that the interest rate is unlikely to fall) borrowers are potentially locking into the cheapest deals for a whole decade, especially if and when shorter fixed term rates do start to rise.
“A borrower who favours two-year fixed rate deals will have had five deals and also five sets of setting up fees in the time it will take for one 10-year deal to expire.
“The stage is set for borrowers to embrace the longer fixed rate mortgage; there are more on offer and they are cheaper than ever before.
“The question is, are borrowers prepared to fix for a decade, bearing in mind the popularity of the short term fixed?”