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Two-year fixes drop to 15-month low

The average two-year fixed rate deal has fallen to its lowest level in 15 months, according to

The average rate for a two-year fix last May was 6.59%, this has now dropped to 4.61%.

Three-year fixed rate deals are now priced at an average of 5.3%, while five-year fixed rates are at 5.74%.

But the low rates have not been enough to tempt borrowers away from their lender’s SVR. calculates that based on a £150,000 mortgage borrowers would save £164.38 a month by reverting to the current average SVR of 4.66%.

Those reverting to a low SVR of 2.50% would save £330.18 per month.

A spokesman for says: “Lenders are easing their criteria and competition is returning to the market, which should be a perfect platform for a resurgent mortgage market.

“But lenders are competing for a reducing amount of business and there is little incentive for borrowers to remortgage to another mortgage deal.”



In my opinion

A report on the selling of payments protection insurance at point-of-sale has generated more questions than answers, particularly on MPPI as it is unclear what constitutes the actual point-of-sale for the product

Retirement Plus gears up again with further advances

Retirement Plus is now offering further advances. But Duncan Young, managing director at Retirement Plus, says it is unlikely to return to lending for a while. The home reversion provider was forced to close its doors and suspend new lending in April 2009 after the number of applications it received outweighed its funding line. Young […]

Regulator should get tough on lenders that have huge SVRs

I was interested to read last week that the Financial Ombudsman Service saw a 2% increase in mortgage-related complaints for the year to March, while complaints relating to lenders’ SVRs increased. Once again lenders are ripping off borrowers as there is no justification for the huge SVRs many have in place. While lenders have to […]

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Considerations for overseas workers in Germany

With Germany’s strong economic growth leading the eurozone’s recovery, many UK businesses are keen to be part of the success story: recent data shows that there are currently more than 280,000* employees working for a UK-controlled company in the country.


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  • derek 27th May 2010 at 6:23 pm

    Why can’t Mortgages be extended the same as Leaseholds to perpetuity,or 999 years,as long as financed ?
    Loans based on 4-5 times average incomes,are unfair,being TRUE average after stoppages is nearer to £12k,the quoted National average includes the very high salaries,often in excess of £200k vis Council Officers.