Fixed rates deals are uncompetitive
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Two and three-year fixed rate mortgages have become uncompetitive as they reflect lenders' funding costs, says Mform.co.uk.
The most competitive two-year fix ranked on a true cost basis comes 45th out of 200 mortgages, while the most competitive three-year fix is 20th, the website's research shows.
The most competitive three-year deal at the moment is Woolwich's product at 5.89 percent with no start-up fees and a 275 exit fee.
The most competitive two-year fixed rate is HSBC's deal at 5.69 percent with exit fees of 2 percent in the first year and 1 percent in the second.
Francis Ghiloni, marketing and business development director at Mform.co.uk, says: "The cost of security seems excessive and fixed rates are uncompetitive across the board."
Since Mform.co.uk unveiled its research last week, Nationwide and Newcastle have cut their fixed rates.
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