Average 2 year fixed rate mortgage hits new record low.
The interest rate of the average 2 year fixed term mortgage has dropped in July to reach a new record low, say market analysts.
According to the Bank of England, the economy has not grown as much as anticipated and, therefore, the base rate has yet again been held. SWAP rates, however, rose in July, which would at any other time signal an increase in mortgage rates.
However, the opposite continues to be true – which is excellent news for you if you are buying or refinancing your home. By holding their rates low, lenders could be avoiding a mass switch to another product that is more competitively priced.
A 2 year fixed rate mortgage, for example, is possible to secure for an average of 2.26%, at the moment. This represents a fall from 2.55% at this time last year.
2 year tracker rate mortgages were available at around 2.01% in summer last year and have recently fallen to 1.82%.
The current market conditions represent an excellent opportunity for you, the borrower, to secure a mortgage at a never-before-seen low rate or save money on your current repayments.
Discuss your low-rate mortgage options on 0800 048 8828.
