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Two-year tracker rates at lowest level since 1988

The average rate on a two-year tracker mortgage has fallen to its lowest level since 1988, while the average two-year fixed rate mortgage has increased to its highest level in ten months, show figures from

The average rate on a two-year tracker mortgage is now 3.40%, while the average rate on a two-year fixed rate mortgage has increased to 4.59%.

Michelle Slade, financial analyst for, says some borrowers have taken a wait and see approach over the last two years, preferring to remain on a lenders standard variable rate rather than move to a more expensive mortgage deal.

She says: “Talk of an imminent base rate rise has caused a surge in the demand for new mortgage deals.

“Lender’s appear to be trying to tempt borrowers off record low SVRs on to new tracker deals instead.

“Rates on tracker deals continue to be more competitive than fixed rate deals, but borrowers need to ensure they factor in the effect of any base rate rises on their monthly repayment when considering a new deal.

“The rise in swap rates appears to have plateaued, but the rise in fixed rates continues – albeit at a slower pace than a few months ago.

“Borrowers looking for a fixed rate mortgage need to act fast as deals are only in the market for an average of two weeks.”


Enlightened lenders want to compete on service not just rate

I read with sympathy James Lindon-Travers’ letter in which he states that lenders rarely allow access to underwriters and when they do, brokers frequently discover that their experience is limited (Mortgage Strategy February 21). I agree with Lindon-Travers, which is why at Aldermore and some other lenders we encourage brokers to contact us to discuss […]

Walking the line

AMI director Robert Sinclair is a busy man, what with making sure the broker’s voice is heard in the industry and dealing with the regulator and impending MMR


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