The seven-year itch

Both Coventry Building Society and Barclays Bank have announced the launch of some highly-competitive 7-year fixed rates.

These deals not only offer longer term security for borrowers, but have been priced to match the cost of some of the best 5-year fixed rates currently on the market. 

Deciding how long to fix your mortgage for is not an easy decision, and for some, locking in to a deal for 10 years may seem too long. These new offerings will provide a useful alternative for homeowners.

The recent vote to leave the EU has resulted in a degree of uncertainty, and this combined with falling funding costs could mean that now is the perfect time for borrowers to grab some peace of mind for the medium to long term.

These deals do carry Early Repayment Charges throughout the fixed period, so it’s important to be mindful of any potential changes in circumstances over the next few years.

Fixing for this length of time will not suit everyone, but for some a seven year deal will provide peace of mind for the future, and being able to do so at record-low rates is an added bonus.