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Average 2-year fixed back below 7%

Average 2-year fixed back below 7%

Category: Mortgages

Updated: 04/01/2010
First Published: 22/07/2008

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 It is now over 6 months old so the content may be out of date.

Fixed rate mortgages

Mortgage borrowers have not had much to be happy about in the last few months as rates have continually soared. Just ten days ago the average fixed rate mortgage peaked at a rate of 7.08%, its highest in over a decade.

In the last week a number of lenders including Halifax, Abbey, Cheltenham & Gloucester, Nationwide BS and Woolwich have all started to reduce their rates, which has resulted in the average two-year fixed falling back below 7%, today standing at 6.96%.

Average fixed rate mortgage rates

Average on 11.7.08Average todayDifference
2 Yr Fixed7.08%6.96%-0.12%
3 Yr Fixed7.30%7.18%-0.12%
5 Yr Fixed6.94%6.88%-0.06%
Source: Moneyfacts.co.uk 21.7.08

Until recently Moneyfacts best buys had been dominated by fixed rate mortgages over 6%. Some lenders have now started offering deals with rates just below this level, so it's worth shopping around.

The number of product on offer has also started to slowly creep back up as lenders that previously cut their product ranges right back start to extend them again. At the end of June there were just 3,403 products on offer; today that has increased to 3,887.

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 Any products featured may be withdrawn by their provider or changed at any time.