You are here: Home - Mortgages - First Time Buyer - News -

Mortgage rates fall to all-time low

0
Written by: Christina Hoghton
10/07/2017
Two-year fixed and variable rate deals have dropped again, to the lowest level on record.

The average two-year fixed rate and two-year variable rate have fallen to their lowest point since records began, according to Moneyfacts.

The financial information provider said this fall in mortgage rates defied economic indicators.

The average two-year fixed rate is now 2.26%, compared to 2.55% a year ago. Two-year trackers have also dropped, from 2.01% last July to 1.82% today.

Charlotte Nelson, finance expert at Moneyfacts, said: “While the average two-year fixed rate had stalled in recent months, it has fallen by 0.04% 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.”

Looking to lock in

Moneyfacts suggested the fall in rates could be a result of intense competition among lenders trying to lock borrowers into a fix. This is because they know the many borrowers currently sitting on their SVR could move overnight if interest rates were hiked.

Nelson explained: “Though rates are still falling for now, borrowers will not necessarily need to see a Base Rate rise for rates to start to increase, as there will come a point where the only way to go from another record low is up. Borrowers sitting on their SVR or coming to the end of their deal may be wise to consider a low fixed rate now, before it’s too late.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
Virgin money, sustainable dividends
Stock of the week: Virgin Money

Graham Spooner, investment research analyst at The Share Centre, picks Virgin Money as stock of the week.

Close