Borrowers are currently able to take advantage of historic low mortgage rates, with highly competitive rates available throughout the mortgage charts. Research carried out by Moneyfacts.co.uk found that the average mortgage rate on a two year fixed mortgage at a 60% loan-to-value (LTV) has fallen by 0.09% year-on-year, with the average rate standing at 1.78% in December 2019 compared to an average rate of 1.87% the same month the previous year. Today, the average rate on a 60% LTV has increased slightly to 1.80%.
Meanwhile, the average rate on a two year fixed mortgage at a 75% LTV has fallen to 2.30% during December 2019 from 2.37% during December 2018, while the average 95% LTV has fallen to 3.25% from 3.54%. Today the average 75% rate stands at 2.29% and the average 95% LTV is 3.25%.
Similarly, the average rates on a five year fixed mortgage have also fallen. On a 60% LTV, rates fell to 2.08% during December 2019 from 2.29% compared to the same month the year previously. Average rates on a 75% LTV fell year-on-year to 2.58% in December 2019 compared to 2.76% and the average 95% LTV fell to 3.57% during December compared to 3.92% the year previously. Today, the average rates on a five year fixed mortgage at a 60%, 75% and 95% LTV stand at 2.11%, 2.57% and 3.56% respectively.
Commenting on the fall in average rates, Eleanor Williams, finance expert at Moneyfacts.co.uk, said: “It is positive to see borrower confidence increasing, especially considering that traditionally this is usually a quieter time of year.
“It may be that the level of competition among lenders, which has resulted in rates falling to attractive lows, is enticing borrowers to take the plunge and purchase, or indeed to refinance their existing deals.”
