The average two-year variable tracker mortgage rate has fallen 0.08 per cent month-on-month, according to data collected by Moneyfacts.
The data reveals that the rate has dropped from 2.10 per cent in April, to 2.02 per cent as of May 2019. This compares to the average coming in at 2.17 per cent in September 2018.
The figures also show that in the month from April to May, the total number of two-year variable tracker mortgage products available grew from 185 to 203.
Within this, the number of products available at 75 per cent LTV and below jumped from 104 to 123, and those at 80 per cent LTV and above fell from 81 to 80.
Moneyfacts finance expert Darren Cook comments: “It appears that the increasing number of products this month, and subsequent intensifying competition, has driven the average variable rate down.
“Of course, it is to be expected that the average fixed two-year rate will likely be greater than that of the average variable rate, as borrowers pay more for the certainty of monthly payments with a fixed deal.
“The amount of interest a borrower is required to pay monthly on a variable tracker rate mortgage could of course change over time, but any fluctuations in rate are likely to be linked to external factors such as the Bank of England base rate.
“Markets are forecasting just a single interest rate increase by 2021, but with current economic conditions so unpredictable, this timescale may shorten, and variable mortgage rates could increase sooner as a consequence.”