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Product focus: Two year fixed rate mortgages

Product focus: Two year fixed rate mortgages

Category: Mortgages

Updated: 14/12/2010
First Published: 13/12/2010

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 It is now over 6 months old so the content may be out of date.

Predictions by financial experts that it will be at least another year before interest rates increase will have left some potential mortgage borrowers concerned as to what their options are. Fixed rate mortgages are a popular choice, as they offer borrowers the assurance of a fixed monthly repayment which will not change when interest rates eventually increase. Here is a selection of some of the current best two year fixed rate mortgage deals.

Santander

  • Santander's leading two year fixed mortgage offers borrowers a rate of 2.65% fixed until 2nd February 2013.
  • The product has a maximum loan-to-value of 60% and the maximum advance is £250,000.
  • A fee of £1,995 is payable. The deal is available to first, second time and remortgage borrowers.
  • No incentives are offered, although there is the option to make overpayments.

First Direct

  • This deal from first direct pays a rate of 2.69% fixed for two years.
  • Borrowers must open or have an existing first direct current account to be eligible for this product.
  • The maximum loan-to-value is 65% and customers can borrow up to £1m. There is an arrangement fee of £499 plus a booking fee of £500.
  • Remortgage customers can enjoy the incentive of free legal fees.
  • The product also offers the option to make overpayments.

Yorkshire Building Society

  • This two year mortgage deal offers first, second time and remortgage customers a rate of 2.69% until 31st January 2013.
  • The product has a maximum loan-to-value of 60% and a maximum advance of £25,001.
  • An arrangement fee of £1,300 is payable, plus a booking fee of £195.
  • No incentives are offered, although the deal offers some flexibility with payments, including the options to make overpayments, underpayments and payment holidays.

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 Any products featured may be withdrawn by their provider or changed at any time.

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