The average intermediary two-year fixed rate is now 0.73% more expensive than the average direct two-year fix, whereas a year ago the average intermediary product was only 0.4% more expensive than the average direct deal.
Currently, the price of the average two-year fix for direct customers is 4.3% and the average price of a two-year fix through intermediaries is 5.03%, a difference of 0.73%.
A year ago,the average direct two-year fix was 4.47% and the average intermediary two-year deal was 4.51%. The differential peaked at 0.85% in March, when the average direct deal was 4.05% and the average intermediary deal was 4.9%.
The differential between two-year trackers is only 0.3%, compared with 0.4% a year ago, with the average direct deal at 3.8% and the average intermediary deal at 3.83%. However, despite the steady year-on-year comparison there has been considerable volatility in this price differential. For instance the differential was was 0.62% last month in favour of direct deals.
The gap between the price of direct and intermediary five-year fixed rates has remained broadly stable over the past year.
Currently the average direct five-year fix is 4.81% and the average intermediary deal is 5.05%, a difference of 0.24%. A year ago, the difference was 0.30%, in favour of direct deals. The differential fell to 0.21% last month.