You are here: Home - News -

More mortgage incentives expected as lenders hold rates low – SPF Private Clients

  • 09/11/2018
  • 0
More mortgage incentives expected as lenders hold rates low – SPF Private Clients
Two-year mortgage rates stood at 2.5% in November, following the Bank of England rate hike in August.


The average two-year fixed rate slightly climbed compared to last month, according to the latest figures released by Moneyfacts.

In the last five business days, the average two-year mortgage rate has slightly risen by up to 0.02%.

However, the average two-year fixed rate has increased by up to 0.2% in the last 12 months, from 2.3% in November 2017 when it reached its lowest level.

The Bank of England kept the interest rates on hold in September, after raising the base rate to 0.75% in August.

Mark Harris, chief executive of mortgage broker SPF Private Clients, said that with transaction levels subdued as buyers and sellers sit on their hands until Brexit is resolved, lenders were competing for a limited amount of business.

He added: “In order to attract borrowers, they must be competitive, which is why many have absorbed the increases in base rate, rather than pass these on to customers.

“However, there is only so far lenders can compete on rate which is why we have also seen an increase in mortgage incentives, such as free valuation and legal fees, and cash back, as well as other quirks such as Halifax’s competition whereby three borrowers will have their mortgage paid off.

“We expect more of this in coming months and are not expecting mortgage rates to rise significantly.”

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.


Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.


Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.


Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
  • RT @robjupp: Great day yesterday for donations to @MortSleepOut. With Gift Aid, we are now close to £17,000. It would be great to get to £2…

Read previous post:
MPs probe financial providers’ duty of care for vulnerable consumers

An influential group of MPs has launched an inquiry looking at consumers’ access to financial services, particularly the experience of...