The average two-year fixed rate mortgage now sits at 2.48 per cent, according to research from Moneyfacts.
The two-year rate has been steadily falling since 17 August of this year, at which point it reached a two-year high of 2.55 per cent.
Last week, the average rate nudged below 2.50 per cent for the first time since April, and competition in the space is pressuring lenders to keep pushing the rate down, according to Moneyfacts finance expert Charlotte Nelson.
She says: “This is down to protection… lenders want to keep borrowers on their books and are aware that people coming off standard variable rates want to get a fix in – and not just under two-year deals.
“Providers are absorbing a certain amount of costs in order to stay competitive.”
This average fall takes place against a wider backdrop of rising fixed rates, however. Last October, average two-, three- and five-year rates came in at 2.21 per cent, 2.49 per cent and 2.76 per cent, respectively.
These have now all risen, to today’s 2.48 per cent, 2.72 per cent and 2.914 per cent, with Moneyfacts citing the two Bank of England rate rises that have taken place in the last 12 months as one reason for this.