Two-year mortgage rates lowest since records began: Moneyfacts

Rates on average two-year fixed and variable mortgages have fallen to their lowest point since Moneyfacts records began nearly three decades ago.

Moneyfacts says this defies economic conditions encouraging the rates to rise.

The average two-year fixed rate is now 2.26 per cent, while the average tracker is now 1.82 per cent.

Moneyfacts finance expert Charlotte Nelson says: “While the average two-year fixed rate had stalled in recent months, it has fallen by 0.04 per cent from June, so it appears that the trend of falling rates is now back on track.

“The fall in both the fixed and variable sector comes at an interesting time. Given mounting inflation and the Bank of England hinting at a base rate rise, falling rates are the last thing many would have expected.”

She adds: “The downward trend can largely be explained by the intense competition amongst lenders looking to offer the best possible deals in the market.”

Moneyfacts began keeping data on mortgage rates in 1988.