Average two-year fix rate nudges upward: Moneyfacts

The average two-year fixed rate has seen a minor increase following last week’s slight fall, although it still sits within 2.52 per cent.

This is due to tightening competition, according to Moneyfacts. The firm adds that the market is repricing products to make them increasingly competitive rather than firms creating new ones in a bid to attract first-time buyers.

In the last 52 months, the average rate has increased from 2.34 per cent.

Further data shows that the average rate for 95 per cent LTV products has dropped to a record low of 3.45 per cent, and at 90 per cent LTV, have increased by an average of 0.02 per cent. Meanwhile, 60 per cent LTV prodcuts have gone up by one basis point on average.

Moneyfacts financial expert Darren Cook says: “Competition is driving the rates down… there currently 129 products at 95 per cent LTV, up from 86 last year and 77 the year before that.

“The 95 per cent LTVs are at a record low, which I expect to see continue to fall.

“The Christmas break saw little activity which I now expect to change following the holiday.”



Under the radar – Fit for Work and sickness absence

Earlier this month we sat in on a presentation delivered by the Fit for Work service, and this session did highlight one small but important change to the offering that we must admit had slipped under our radar. The Sickness Absence Review published in 2010 suggested that the Independent Assessment Service (now branded Fit for Work) should have three access points; referral by […]


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