The average rate for a two-year fixed mortgage has continued to fall and is 2.03 per cent as of 15 May, the lowest point it has been for a year, analysis from Moneyfacts shows.
This is down from the 2.15 per cent average seen in April and the 2.48 per cent average recorded during May last year.
The current average rate is also significantly lower than the high of 2.50 per cent which was seen in June 2019.
Eleanor Williams, spokesperson for Moneyfacts, said: “The impact of the ongoing pandemic crisis and two base rate cuts have been felt keenly across the mortgage market.
“Lenders are continuing to adapt and evolve in an ever-changing environment and we are beginning to see positive movement with providers starting to relaunch deals, widen the loan to value (LTV) caps which were put in place, and make rate reductions across selected products.”
Fewer high rate products
Although some lenders have brought lending capacity back up to higher limits, Williams said the limited number of high LTV products which tend to have higher rates could be contributing to the low average.
“On the other hand, for those eligible and looking at remortgaging and at lower loan-to-value products, this could be a good time to consider their options,” she added.
Shekina is the deputy editor at Mortgage Solutions and commercial editor at Mortgage Solutions and Specialist Lending Solutions. She has nearly eight years of experience in the B2B publishing market, having previously covered the hospitality, retail, pet, accounting and jewellery sectors.
Shekina has worked for Mortgage Solutions and Specialist Lending Solutions for almost five years. Here, she covers the market’s breaking news stories, engages with professionals in the sector, and oversees any commercially agreed content in partnership with mortgage-related companies.
This includes presenting webinars and hosting roundtable discussions on developing themes in the mortgage sector.
She is an NCTJ-trained journalist and was nominated for the Headline Money Awards Mortgage Journalist of the Year in 2021.
In her spare time, Shekina likes to read, travel, listen to music and socialise with friends.
She currently reports on current events in the mortgage market and liaises with financial clients to produce sponsored content.
Follow her on Twitter at @ShekinaMS
