View more on these topics

Average two-year rate pushed further downwards : Moneyfacts

Moneyfacts data shows that the average two-year fixed rate mortgage is now 2.51 per cent – down 0.1 per cent from last week.

In mid-August the average rate hit a two-year high, coming in at 2.55 per cent, but it has been heading progressively downwards since – although not quite to the 52-week low of 2.17 per cent, seen on 25 September 2017.

Moneyfacts financial expert Charlotte Nelson says: “Swap rates are going down – or at least levelling off – and providers are adjusting to this… most lenders incorporated the [recent Band of England] rate rise into their products before it was announced, and now they can look around and see what other lenders are doing and readjust accordingly.

Additionally, “the 95 per cent LTV market is falling across all fixes, which is having a big effect.”

Nelson also points to heavy remortgaging activity, leading to lenders “tying to look more attractive to borrowers,” as a reason for competition remaining high despite the rate rise.

On Monday, Moneyfacts predicted that more remortgaging activity is on the cards due to the gap between the average two-year fix and the average SVR being at a ten-year high.

Recommended

Money - thumbnail

Average five-year fixed rate deal hits high in August: Moneyfacts

Moneyfacts data shows that as of today, the average five-year fixed rate is 2.92 per cent, slightly down from the 52-week high of 2.95 per cent which occurred earlier in the month. A year ago, the average figure stood at 2.77 per cent, close to the 52-week low of 2.74 per cent, seen on 26 […]

Rob Barnard leaves Pepper for Masthaven Bank

Former Pepper Money sales director Rob Barnard has joined the long-term lending side of Masthaven Bank in the same role. Barnard is a well-known face in the industry, having worked with Pepper Money for two and a half years and six and half as head of business development at Aldermore. He will oversee Masthaven’s first and […]

Protection-shelter-umbrella

For better or worse, or to save IHT!

Karen Playfair, Senior Marketing Consultant I recently got married, and my husband and I realised that as a result we should review our wills – not one of our most romantic moments, but possibly one of our more sensible ones! And even though we both previously had wills, it turns out that when you get […]

Newsletter

News and expert analysis straight to your inbox

Sign up