Average two-year fixed rate marginally falls: Moneyfacts

The average two-year fixed rate has declined very slightly, with little activity in the market over Easter, according to Moneyfacts.

The current rate stands at 2.47 per cent, two basis points lower than the rate recorded a year ago.

Moneyfacts says rates that within the the 60 per cent LTV category and the 95 per cent LTV category have both reduced, with average in the former falling from 1.92 per cent to 1.90 per cent, and the latter from 3.27 per cent to 3.26 per cent.

In contrast, average rates in the 70 per cent LTV category has risen from 2.53 per cent to 2.54 per cent, and the 85 per cent LTV category from 2.45 per cent to 2.46 per cent.

Meanwhile, rates in the 65 per cent LTV category, 75 per cent LTV category, 80 per cent LTV category, and the 90 per cent LTV category have all remained unchanged.

Moneyfacts finance expert Darren Cook comments: “There has been very few changes this week due to the Easter break, with many people away for the holidays this has led to a slow down in the market.

“I am surprised to see the 60 per cent LTV category fall as the margins within this category are very small.

“However, the 95 per cent LTV category continuing its declining trend is not surprising. Many lenders are wanting to get first-time buyers onto the market, so this category is extremely competitive.”

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