"We have seen minimal take-up of rates fixed for 10+ years"

Ultra-long fixed rate mortgages of 10 and 15 years have failed to take off in 2025, with brokers reporting negligible take-up. More mainstream lenders boosting affordability has also undermined the model of ultra-long-term loans as people can now often borrow more without fixing in for 10 years.

While the Bank of England has cut rates, swap costs have risen, leaving specialist long-term fixes uncompetitive. Most borrowers are opting for the flexibility of two- to five-year deals, experts said.

Justin Moy, Managing Director at Chelmsford-based EHF Mortgages, explained: “The borrower appeal of 10yr+ fixed rate deals has been low for us; one of their USP's was the ability to borrow more than the typical High Street lender could provide through these longer-term deals. But with the majority of mortgage lenders now offering extended multiples and higher Loan To Income (LTI), the lower mainstream mortgage rates make it difficult to justify the higher cost of these specialist products.”

He added: “There is definitely a place within the market for such long-term deals, but the cost needs to be much lower to justify them.”

Aaron Strutt, Product and Communications Director at London-based Trinity Financial, stressed: “The overwhelming majority of borrowers are taking two, three and five-year fixes. Most are simply not interested in the ten or 15-year fixes unless they need an income stretch mortgage through one of the specialist lenders.”

He continued: “Many of the banks and building societies do not even offer ten or 15-year fixes so they are not that widely available. We are at the stage where many people think that a three-year fix is a longer-term option, and there is an assumption that rates will be cheaper in a few years time.”

Strutt added: “Taking a longer-term fix may make sense if you have a smaller mortgage, but for most people with larger mortgage loans, the 0.6% premium for taking a ten-year fix is not worth it. Many homeowners wish they had taken a ten-year fix at 2% when they were available, but those days have gone. Hardly any of our clients have taken longer-term fixes, and there has been very little interest in them.”

Others echoed the same message. Stephen Perkins, Managing Director at Norwich-based Yellow Brick Mortgages, said: “We have seen minimal take-up of rates fixed for 10+ years. One of the main benefits of those products was the ability for enhanced borrowing amounts. However, with rules easing and most mainstream lenders now increasing their affordability maximums, most borrowers like to keep their mortgage rates for 2-5 years with regular reviews.”

Ken James, Director at London-based Contractor Mortgage Services, commented: “The road to homeownership is long, with many a winding turn and the same seems to hold true for borrowers considering long-term mortgage fixes. One of the key challenges is that many clients are hesitant to lock in for such extended periods.”

He explained: “You'd think uncertainty about future market conditions would push borrowers to consider longer term fixed deals as they would give more certainty and peace of mind, but the UK mindset seems to push back from this type of long-term mortgage arrangement.”

James added: “While long-term fixed-rate mortgages still appeal to certain borrowers seeking long-term stability or those with larger loans requiring less stringent stress tests, overall market sentiment leans towards shorter-term commitments. This preference reflects a cautious optimism among borrowers, balancing the desire for lower initial rates with the flexibility to adapt to future market changes.”

And Shaun Sturgess, Director at Swansea-based Sturgess Mortgage Solutions, cautioned: “In my experience, I haven’t arranged a single fixed rate longer than five years in the past five years. For ultra-long fixes to gain traction, the interest rate would need to start with a ‘2’.”

He went on: “Until then, most clients will continue weighing up the 2-year versus 5-year options. Our core demographic is first-time buyers in South Wales, and they value flexibility above all else, whether that’s reducing their term as incomes rise, or accessing lower LTV products as property prices increase. Locking in for 10 or 15 years removes those opportunities.”

Sturgess concluded: “While there is always a niche group of borrowers who like the security of a long fix, for the mainstream market it simply doesn’t fit. Clients want certainty, yes, but not at the expense of future opportunities. Until pricing becomes more competitive, I don’t see these ultra-long term fixes becoming a realistic alternative to shorter-term fixes.”