Mortgage rates sink to seven year low! - Mortgages - News - Moneyfacts


Mortgage rates sink to seven year low!

Mortgage rates sink to seven year low!

Category: Mortgages

Updated: 22/06/2010
First Published: 22/06/2010

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Homeowners have a real reason to celebrate after it was revealed mortgage rates had dropped to a seven year low.

The latest research from found that the average rate on a two year fixed rate mortgage deal had fallen to 4.52%, its lowest level since September 2003.

The cost of fixed rate mortgage deals has been falling since September last year, as lenders have tried to tempt borrowers away from record low standard variable rates (SVRs).

"Many borrowers are opting to remain on record low SVRs and overpaying their mortgage rather than secure a new deal at a higher rate," said Michelle Slade, spokesperson for

"Lenders are trying to incentivise borrowers onto new fixed rate deals by making significant cuts to rates.

"Previously, only deals for borrowers with large deposits were seeing cuts, but as the market improves borrowers with smaller deposits are being offered more competitive deals too."

Amongst the best two year fixed rate mortgages currently available are a deal from The Co-operative Bank at a rate of 2.95% and a deal from HSBC at 2.99%.

Yorkshire BS also offers a two year fixed rate mortgage deal at 3.05%.

Find the best mortgage rate - Compare best selling mortgages

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Halloween horrors that put people off a home

Halloween is just around the corner, and many people will be getting their homes ready for a night of spooky fun. However, if you’re trying to sell your home, there are some real-life horrors that could put people off…

Londoners could be saving for a century to buy

We all know how expensive property can be in London and how tricky it is to get on the ladder, but the figures could still come as a shock, with a study finding it could take more than a century for the typical Londoner to save a deposit.

85% of remortgagors benefit from lower rates

Mortgage rates are among the lowest ever recorded, and in the case of fixed rates, they just keep falling! This means it’s never been cheaper to fix your mortgage rate for the long term, and unsurprisingly, remortgagors are taking advantage.