Competition is intensifying in the long-term fixed rate mortgage market as lenders turn their attention to 10-year deals.
Barclays launched a record low 10-year fix with an interest rate of under 3%.
There are currently 77 different mortgages that offer a rate fixed for 10 years.
The typical interest rate charged on a 10-year fixed rate loan is now 4.17%, the lowest level ever recorded and down from 4.23% last year.
While shorter term fixed rate mortgages had previously been favoured by the majority of borrowers, locking into the current historically low interest rates for the longer term was boosting demand for the products.
“This is great news for borrowers as they are able to fix their repayments for a decade at a time, which removes the fear of what happens if interest rates rise.”
The Barclays 2.99% deal is available to homeowners with a 40% deposit who pay a £999 fee.
The group also has a rate of 3.99% for those who have only 25%t of their property’s value to put down.
Competition among shorter-term fixed rate deals also remains intense, with HSBC launching a two-year deal at just 1.29%.
The mortgage is available on loan-to-value ratios of up to 60% and comes with a £1,499 fee.