Two-year mortgage rates stand at 2.5%
The average two-year fixed rate mortgage rate has dropped slightly when compared with last month, according to the latest figures released by Moneyfacts.
Rates have increased by up to 0.13% from February of last year when the average stood at 2.36% – a relatively low level.
The two-year fixed rate hit its highest level in August 2018, moving to 2.55%.
A spokesperson from Moneyfacts told Your Money’s sister title Mortgage Solutions that the mortgage market has experienced some fresh fixed rate reductions over the past week.
“Prominent brands are competing in the market, including Tesco Bank and TSB who now offer newly priced fixed rates, including those for borrowers with just a 5% deposit.
“Yorkshire Building Society also cut the rate on its two-year fixed deal by 0.07%, which is now priced at 1.46% for house purchase customers who wish to borrow at 65% loan-to-value. It will no doubt turn the heads of borrowers looking for a competitive rate alongside a decent incentive package, which includes a free valuation and £250 cashback.
“It is clear to see that the mortgage market is striving to entice new borrowers with these latest deals, so it’s worthwhile for borrowers to take advantage if they can. As with any deal, it is important borrowers weigh up all the costs involved, and seek advice if they need help.”
The Bank of England’s base rate currently stands at 0.75%.