Average two-year fix continues to drop: Moneyfacts

The average two-year fixed rate mortgage has continued its steady decline.

According to Moneyfacts, at 2.49 per cent, the average rate has fallen one basis point in the past week and dropped two basis points since 1 January 2019.

Further data shows the average 95 per cent, 85 per cent and 75 per cent loan-to-value products have all declined by one basis point.

In contrast, the average 70 per cent LTV product has risen two basis points, although there are only 93 products in this range. Meanwhile, the average 60 per cent LTV product has stayed the same at 1.87 per cent.

Moneyfacts financial expert Darren Cooks says: “High LTVs have continued to fall, with the 95 per cent LTV seeing a consistent decline over the past weeks.

“This continued reduction is a positive for first-time buyers, as competition among lenders will enable more people to get onto the property ladder.

“The 60 per cent LTV market is saturated. Having remained the same rate despite falls in most LTVs, indicators that it has reach its natural lowest limit.

“Competition is continuing to drive down prices, with lenders seeking to marginally undercut rivals.”


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