Average 2-year fixed rate falls below 3% for the first time

Mortgage borrowing rates are continuing to plunge with the average cost of a two-year fixed rate deal dropping below 3 per cent, new figures show. Fierce competition between mortgage lenders is increasing the options for borrowers, as well as pushing interest rates down to record lows, with five lenders now offering fixed rate mortgages of less than 1.3 per cent, according to financial information group Moneyfacts. The average cost of a two-year fixed rate mortgage has fallen by eight basis points during March to stand at 2.98 per cent – the first time it has ever dropped below 3 per cent. Average 2-year fixed mortgage rate by max loan-to-value   Date Max 60% LTV – Ave Rate  Max 70% LTV – Ave Rate Max 75% LTV – Ave Rate  Max 85% LTV – Ave Rate  Max 95% LTV – Ave Rate  Overall 2 -Yr Fixed   01-Mar-15  1.93  2.67  2.81  3.06  4.9  3.06  29-Mar-15  1.92  2.65  2.72  2.89  4.81  2.98  Change  -0.01  -0.01  -0.09  -0.17  -0.09  -0.08  Source:                                               Moneyfacts.co.uk The drop in rates is due to increased competition and falling…

Read More »