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Product focus: Two year fixed rate mortgages

Product focus: Two year fixed rate mortgages

Category: Mortgages

Updated: 14/02/2011
First Published: 14/02/2011

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 It is now over 6 months old so the content may be out of date.

Speculation has been mounting over when the Bank of England will increase interest rates, with some financial analysts predicting sooner rather than later. Borrowers who have been enjoying low monthly repayments on variable rate mortgages of late may be concerned at the prospect of rates increasing and what their options are. Fixed rates offer customers the piece of mind of paying a set monthly repayment and can help when planning or budgeting around other finances. Here is a selection of some of the best two year fixed rate mortgage deals for borrowers with a deposit of 15%.

Principality Building Society

  • This deal offers borrowers residing in England and Wales a rate of 3.99% fixed to 31.3.2013.
  • First, second time and remortgage customers can borrow between £5,000 and £250,000 and the maximum loan-to-value is 85%.
  • An arrangement fee of £999 is payable.

Norwich & Peterborough Building Society

  • This two year fixed mortgage offers customers a rate of 4.18%.
  • The deal offers a loan-to-value of 85%, has a minimum advance of £20,000 and a reservation fee of £995.
  • No incentives are offered, although borrowers looking for flexibility should be pleased with the overpayment and underpayment options and the opportunity to take payment holidays.

Post Office

  • The Post Office's two year fixed deal offers a rate of 4.25% to 31.1.2013.
  • Customers can borrow a minimum advance of £25,001 and an arrangement fee of £995 is payable.
  • There is also the opportunity to make overpayments of up to 10% of the outstanding balance.

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 Any products featured may be withdrawn by their provider or changed at any time.

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