The average two-year fixed rate dropped slightly this week, data from Moneyfacts shows, falling to the lower bound of the 2.49 per cent range.
This represents a return to the rate’s recent downward trend after a slight increase was posted last week.
Other than last week’s aberration, the average two-year rate has been steadily falling since the start of 2019 after touching 2.53 per cent at the back end of 2018.
Despite this trend, exactly one year ago the average rate was 2.36 per cent, however – which is now a 52-week low.
Moneyfacts finance expert Rachel Springall says that there has been a number of reductions this week, “with two in particular causing a storm in the market – the 0.09 per cent reduction from Barclays and the 0.04 per cent cut from the Post Office, which are both higher-LTV products” – 95 per cent and 85, respectively.
In addition to this, Bank of Ireland UK, Nottingham Building Society, TSB, Accord, and Leeds Building Society have all posted rate cuts in the last five days, Springall adds.