Product focus: Two year fixed rate mortgages - Mortgages - News - Moneyfacts

News News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Product focus: Two year fixed rate mortgages

Product focus: Two year fixed rate mortgages

Category: Mortgages

Updated: 02/02/2011
First Published: 02/02/2011

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

In the last few weeks the cost to the banks to raise funding for mortgage lending has risen and this cost is being passed on to borrowers through higher mortgage rates.

Nearly all mortgage lenders have increased their fixed rates, so borrowers looking for a new deal need to act fast.

Below are a selection of competitive two year fixed rate deals.


  • If borrowers have a 40% deposit then the best rate on the market is being offered by Santander.
  • The lender is charging 2.65% fixed until 2 April 2013, subject to a £1,995 fee.
  • The mortgage is available direct from the lender, with a maximum mortgage advance of £250,000.

Leeds Building Society

  • Borrowers with a 25% deposit could consider the two year fixed rate deal from Leeds Building Society at 2.99% until 31 March 2013.
  • The deal is subject to a £999 and borrowers must take out buildings and contents insurance with the lender in order to qualify.

Norwich & Peterborough Building Society

  • Norwich & Peterborough Building Society is offering borrowers with a 15% deposit a rate of 3.89% fixed for two years.
  • The deal is available to customers borrowing a minimum of £20,000 and is subject to a £995 fee.

Newcastle Building Society

  • The lowest rate on the market for those with just a 10% deposit is from Newcastle Building Society.
  • The lender is charging 5.15% fixed until 31 March 2013. The deal is subject to a £199 reservation fee and a £699 completion fee.
  • The deal is available to first and second time buyers, but not remortgagers.

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 Any products featured may be withdrawn by their provider or changed at any time.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

Building societies winning the mortgage rate war

Competition is fierce in the mortgage market, and borrowers may assume that the rates from banks will be significantly lower than those elsewhere. However, things aren’t as they seem, as building societies are the winners of the mortgage rate war.

Homemover numbers fall for first time since 2011

The mortgage market enjoyed a record year in 2016, so it may come as a surprise to hear that the number of people moving home has fallen for the first time in five years, with fewer apparently taking advantage of the market.

2016: the best year for remortgaging since 2009

Remortgaging has certainly seen a surge in activity of late, helped in no small part by the dramatic drop in mortgage rates over the last year, so much so that 2016 as a whole proved to be the best year for the sector since 2009.