The number of 10-year mortgage products available on the market has been rising since 2014, data collected by Moneyfacts shows.
This follows a drop in the number available between 2009 and 2014 by two-thirds.
The figures show that on 1 April 2009 there were 60 products of this type on the market, which fell to 20 by 1 April 2014.
Since 2014, however, there has been a steady rise. The largest growth was between 2014 and 2016, where the number of 10-year fixed products available on the market rose from 20 to 101 – increasing again to 151 as of 21 March 2019.
Looking at LTVs, the middle to lower end – 75 per cent LTV to 60 per cent LTV – of the market makes up the largest portion of the available products. As of March 2019, these accounted for 49 and 44 products, respectively.
Within the 75 per cent category there were 11 products in 2014, while the 60 per cent category had none.
Meanwhile, in the 80 per cent category, there were 4 products recorded in 2014, while it has increased only slightly relatively, to 10 as of March 2019.
Accord mortgage manager Jemma Anderson comments: “There is an increasing proportion of customers looking for the security and stability offered by a 10-year fixed rate and we want to cater for that demand and offer something to suit a wide range of customers.
“Longer term fixed rates have certainly increased in popularity. Last month, Yorkshire Building Society, reported a 44 per cent increase in the number of borrowers opting for longer-term fixed rate mortgages.
“Perhaps with the uncertainty provided by Brexit and longer-term rates reducing, the 10 year could be a term that continues to grow in popularity.”
“Two- and five-year terms remain the most popular with five years really increasing over recent years.
“The 10-year products act as an alternative for those prepared to pay a premium for the stability and security offered by a 10-year fixed and the ability it gives them to plan their finances long term.”
Moneyfacts finance expert Darren Cook adds: “Over the past five years, competition in the two and five-year fixed rate sectors has been rife, so it is no surprise that some providers have chosen to launch products in the 10-year fixed rate sector to compete for business.
“Even though the cost of wholesale funding for a 10-year fixed rate mortgage may be a little higher than for those mortgages with a shorter initial rate period, rates may appear a little too high when first considered by a consumer.
“However, the more additional providers and product that start to enter in this sector, the additional competition for business will certainly cause interest rates to fall.
“It seems that borrowers who are requiring a lower loan-to-value mortgage are benefiting most in the ten-year fixed rate market, with just over one-hundred products of the 151 products currently available in the market today require a deposit or equity of at least 25 per cent and above.”