Cheaper funding results in lower 2 year fixed rate mortgage deals.
For home-owners with a 25% deposit cheap 2 year fixed rate mortgage deals are available.
Cheaper funding has led to more competition between lenders offering fixed rates. The first deals to hit historic lows were longer term 5 year fixes and now lenders are cutting their 2 year fixed rates too.
Several new deals have been launched of late, 2 year fixed rate mortgages are now available at under 3%. Shorter term fixes have now become one of the most competitive areas of the market.
The lowest rates offered tend to be for deposit levels of 25% and above which rules out many first time buyers.
Recently the West Bromwich Building Society announced the release of a 2 year fixed rate at 2.95% which is the lowest rate currently available. The deal has an arrangement fee of £1000 and is available for 75% LTV.
If you have a 25% deposit and are looking to secure an offer you are advised the act without delay. The lowest rates tend to be available for only a limited period before the fixed tranche of funding is exhausted through high demand.
Various other lenders have also introduced a cut to their 2 year fixed mortgage rates. The Leeds Building Society are one lender who is passing on the benefit of lower funding costs by cutting its rates by 0.2%. A 2 year fix is now available at 2.95% for 75% LTV.
Call Deal Direct to compare 2 year fixed rate mortgage offers.
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