Kensington Mortgages has released two new products within its Select range.
The products are a two-year fixed 85 per cent LTV at 3.49 per cent and a five-year fixed 85 per cent LTV at 4.04 per cent.
Both products come with a completion fee of £1,299 and free valuations.
To have access to the new products, unsecure credit arrears cannot go above stage two and no defaults or CCJ’s are accepted on application in the last 36 months.
Moneyfacts finance expert Darren Cook says: “The narrowing of the margin between the two- and five-year average fixed rates may be a result of the competitive two-year fixed market becoming saturated with cheaper deals and mortgage providers having no option but to compete on five-year deals.”