The highly competitive deal is only available for borrowers who have a minimum 40% deposit. It also has a £1,000 product fee, although this can be added to the mortgage amount if you don't want to pay it upfront, although you will then pay interest on it for the lifetime of the mortgage.
The other factor to bear in mind is the early repayment charge, with borrowers facing a charge of 6% if they opt to repay the loan or switch to another lender within the first 5 years of having the mortgage. The charge falls in subsequent years, but still needs to be factored in if you think you may want to remortgage or repay the debt during the initial introductory period.
Should you take out the Lloyds Bank 10-year fixed-rate mortgage?
In an environment where interest rates are on the up, with the Bank of England hinting at a number of incremental increases to the base rate over the course of this year, now is arguably an excellent time to fix your mortgage for as long as possible. Although there are other longer-term fixed-rate mortgages available, including 40-year deals from Habito* and Kensington Mortgages, these generally attract a higher rate than shorter-term alternatives. However, at just 1.66%, the Lloyds Bank mortgage is incredibly attractive, particularly if you believe interest rates are likely to keep rising back towards their historic norm of around 5%.
There is frequently updated commentary on whether now is a good time to take out a fixed-rate deal in our article "Remortgaging in 2022 - is now the right time to fix and for how long?"
How to apply for a Lloyds Bank 10-year fixed-rate mortgage
Although you can apply for a Lloyds Bank mortgage directly, either in branch, online or over the phone, it may be worth speaking to a mortgage broker who can make sure it is the best deal for you and that you meet the lending criteria attached to the product. This will help you avoid being turned down for the mortgage, which could have a detrimental effect on your credit rating. If you don't have a broker, we like Habito*, which offers independent, whole-of-market advice at no cost to the end user. Alternatively, if you prefer to speak to an adviser face to face, you can use VouchedFor* to find someone near you who can help.
If a link has an * beside it this means that it is an affiliated link. If you go via the link Money to the Masses may receive a small fee which helps keep Money to the Masses free to use. But as you can clearly see this has in no way influenced this independent and balanced review of the product. The following link can be used if you do not wish to help Money to the Masses - Habito, VouchedFor
