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Average two-year fixed rate falls for first time in a year
After ticking up over the last 12 months, mortgage rates have fallen ever so slightly in October
The average two-year fixed rate has fallen by 0.04% in the last month.
This marks the first time it has fallen at all in 12 months, said Moneyfacts, since the record low of 2.20% in October 2017.
The financial information provider said the average two-year fix now stands at 2.49%, down from 2.53% last month.
Charlotte Nelson, finance expert at Moneyfacts, said: “Many would have assumed that the average rate would have increased in the aftermath of the base rate rise this August, however the opposite seems to be the case. Providers have started to reignite competition in the market to attract remortgage customers and retain their mortgage books.
“With the average standard variable rate (SVR) increasing for a second month running (reaching 4.89% in October) the motivation to remortgage among borrowers is growing.
“Borrowers know only too well that low rates won’t be around forever, so anyone on an SVR or approaching the end of their deal would be wise to shop around and take advantage of the current competition in the market.”