From 15 March first-time buyers, homemovers and remortgagors in England and Wales will have access to long-term fixed rate periods starting at 10-years, going up to 40-year fixed rate terms.
The Bank of England’s base rate has gone from the highest on record at 17% in November 1979, to the lowest on record at 0.10% in March 2020.
The lender believes that its Habito One product can shield people from a potential increase to the current interest rate, which it believes was touted by the Chancellor at the Spring Budget.
Habito said: “We don’t have a crystal ball, but we think Habito One can offer homeowners their right for safety and security for as long as they want.”
Looking towards Habito One’s lack of an early-repayment charge, the lender said that long term products from upwards of 10-years on average include high ERCs at around 6%.
It believes this is what has made long term fixed rate products unattractive to consumers in the past.
The industry has been reacting to the launch, with some saying that despite the proposition being interesting the rates are not compelling enough for consumers to want to lock down for this length of time.
Habito One will be available exclusively via Habito.
