72% of house-hunters would consider a 10-year fix, claims HSBC

18th July 2016

According to new research from HSBC, 72% of house-hunters would consider fixing their mortgage for 10 years as a way of providing greater certainty.

The research, which coincided with the launch of HSBC’s new 10-year fixed-rate deal at 2.79%, also revealed that millennials are most likely to seek mortgage stability with almost 78% willing to consider fixing for 10 years, followed by Londoners (71%), those in the North East (62%) and those in Yorkshire & Humberside (51%).

The findings also show that 56% of men and 45% of women would consider committing to a long-term relationship with a mortgage and fixing for 10 years. Around 45% of respondents cited the stability and security of knowing how much they have to pay each month as the top reason for considering fixing their mortgage for 10 years. Around 34% feel uncertain about how mortgage rates may change in the future.

Tracie Pearce, HSBC’s head of mortgages in the UK, said: “Ten years might seem like a lifetime away, yet our research shows that we like to plan ahead and are currently looking for security. Fixing a mortgage rate for the long-term offers customers certainty that their mortgage repayments will not increase over that period.

“Our commitment to offering value to our customers can be seen with our two-year fixed rate at 0.99%, our five-year fixed rate at 1.99% and now our new 10-year fixed rate at 2.79%. Fixing a mortgage now can give homeowners important peace of mind, and the new 10-year products offer the assurance that their mortgage rate won’t change, regardless of what else might happen with the economy or what the Bank of England base rate does.”

HSBC’s 10-year fix is available for purchases and remortgages up to 70% loan-to-value (LTV) with no product fee. It also includes free standard valuation fees for both purchases and remortgages and free standard legal fees for remortgages.

*2 year fixed with TSB 1.09% then 3.59% - APRC is 3.3% Max LTV is 60%. Quoted on 27th May 2020.