Consumer interest in 10-year mortgages is at a historic high, as homeowners seek to keep their monthly payments down as interest rates are expected to rise further, according to new research by MoneySuperMarket.

With predictions that interest rates could hit 3.8% this year, MoneySuperMarket site data reveals that 18.1% of remortgage queries in March related to 10-year fix deals. This is compared to 3.8% six months ago and 2.9% 12 months ago.

Alongside greater certainty, MoneySuperMarket says the cost of longer-term mortgage deals could be attributable to a drop in the cost of these products. For example, based on someone taking out an average mortgage (£199,023 mortgage over 19 years at 43% loan to value), MoneySuperMarket’s analysis of the best five and 10-year fixed rate deals offered by the ‘Big six lenders’ found that 10-year products are only £15.17 per month more expensive on average, with monthly payments equivalent to £1,062 for five-year fixes and £1,077 for 10-year fixes. The cost difference between the same products in April in 2021 was £65, meaning the monthly difference in costs has reduced 77%.

Related consumer research undertaken by MoneySuperMarket reveals 27% of those surveyed will either be re-mortgaging or taking out a new mortgage this year.

58% of those consulted said that they would be fixing for five years, while a further 13% reported that they would be fixing for 10 years. 24% will opt for a two-year fixed deal, whereas only 1% would be selecting a tracker. 4% were unsure.

39% of those opting for five to 10-year fixed deals said they were doing so because of their concern about rising interest rates and their desire to keep their mortgage repayments down, while 27% cited their need for greater certainty as they near retirement.

Meanwhile, 44% of those surveyed currently believe it’s a seller’s market, compared to 16% who believe that it is a buyer’s market.

Ashton Berkhauer, mortgage expert at MoneySuperMarket, said: “Interest rates have a direct impact on mortgage repayments, so it’s no surprise that with rates on the rise and so much economic uncertainty, homeowners are seeking to lock in longer deals and give themselves some financial protection.

“However, while two and five-year fixes are common, the growth in interest in 10-year deals is noteworthy and a sign of homeowners’ growing concerns about interest rate rises.

“However you feel about the prospect of further rate increases, it’s always important to ensure that you’ve got the right mortgage deal, so make sure you do your sums and shop around for the best deal for your needs.”