Two-year fixed rates hold steady at 2.5%
Two-year mortgage rates stood at an average of 2.5% in February, according to data.
The average two-year fixed rate mortgage has just slightly dropped compared to last month, according to the latest figures released by Moneyfacts.
In the last five business days, the average two-year mortgage rates remained steady.
However, rates have increased by up to 0.13% from February last year, standing at 2.36% at its lowest level.
The two-year fixed rate hit its highest level in August 2018, at 2.55%.
A spokesperson from Moneyfacts told Your Mortgage’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 maintained the base rate at 0.75% in February, after last raising it from 0.5% in August 2018.