The City Mortgage Solutions team has seen good news for mortgage owners this month as interest rates on 2 year fixed rate mortgages fall for the first time in 12 months as lenders compete for new business.
The Bank of England’s decision to raise interest rates last August has, rather surprisingly, prompted 2 year fixed mortgage rates to fall. With mortgage lenders forced to compete, the average 2 year fixed rate is now at 2.49%, down from 2.53% in September and at it’s lowest rate since October 2017.
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.”
At the same time, the Standard Variable Rate has risen for the second consecutive month to 4.89%. With a wide disparity between the standard variable rate and the average 2 year fixed rate, there are currently plenty of savings to be made for mortgage owners whose fixed-term deals have finished, or for those due to finish in the next few months.
These attractive 2 year fixed deals are unlikely to remain over the longer term so mortgage owners on a standard variable rate are encouraged to review their situation.
As an award-winning independent mortgage adviser, City Mortgage Solutions have access to a wide range of industry leading deals, enabling us to find the best solution to suit your circumstances.
If your fixed-rate mortgage deal is ending soon or you have already been moved on to a standard variable rate, contact us today to make an appointment with one of our experienced mortgage brokers, and benefit from independent mortgage advice, designed to secure you the best deal.