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Average two-year fix continues to rise: Moneyfacts

The average two-year fixed rate has continued to steadily creep up, according to data collected by Moneyfacts.

The current rate is 2.48 per cent, up one basis point from the rate recorded a month ago.

Moneyfacts says rates within the 60 per cent LTV category, and the 95 per cent LTV category have both dropped, with the average in the former declining from 1.91 per cent to 1.90 per cent, and the latter from 3.25 per cent to 3.24 per cent.

In contrast, rates within the 75 per cent LTV category, 85 per cent LTV category, and the 90 per cent LTV category have increased, from 2.34 per cent to 2.36 per cent, 2.47 per cent to 2.48 per cent, and 2.63 per cent to 2.64 per cent, respectively.

Meanwhile, average rates in the 65 per cent LTV category, 70 per cent LTV category, and the 80 per cent LTV category remained unchanged.

Moneyfacts finance expert Darren Cook comments: “The LTV categories with the largest number of products, the 75 per cent LTV category and the 90 per cent LTV category, have both increased.

“This is ether due to SWAP rates having increased or because lenders are having concerns about defaults in the current economic climate, or a combination of both.

“Unsurprisingly the 95 per cent LTV category has continued to decline, with margins still very high and competitive.”

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