fbpx

Rate reductions reported for fixed two-year mortgages

New analysis shows that the first week of December has brought significant reductions in the rates for fixed two-year mortgages, which have taken them back to under 5% in some cases.

This research was by L&C Mortgages and it follows earlier data showing that rates for fixed rate mortgages were trending downwards throughout November. L&C has indicated that its analysis suggests that reductions in swap rates are contributing to the fall in the fixed rate levels across the market. It points out that two major lenders – Principality Building Society and Coventry Building Society – have now introduced fixed two-year loans with rates below 5%.

The mortgage offered by Coventry BS comes with a rate of 4.85% and LTV of 65%, while the fee is set at £999. The two-year fixed loan from Principality has a rate of 4.65%, 65% LTV and a fee of £895.

Rates for fixed five-year deals were already below the 5% level at both lenders, with the five-year loan from Coventry BS having a rate set at 4.69% and the rate for the Principality BS one being just 4.60%. It does have a higher £1,395 fee though.

David Hollingworth from L&C stated that the current reductions in fixed rates were coming at the same time that the Base Rate is being threatened with another rise, creating a confusing situation for many borrowers.

Mortgage advisors with CeMAP training could find that these reductions, coupled with the greater security of fixed rate loans, makes them the most popular option for borrowers right now.

Share:

Facebook
Twitter
Pinterest
LinkedIn
Mortgage Advisor
Related

Related Posts

What is a mortgage certificate?

A mortgage certificate is sometimes referred to as lending certificate, Decision in Principle (DIP), Agreement in Principe (AIP) or a mortgage promise.

CeMAP Course Online pop up