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Derin Clark

Derin Clark

Online Reporter
Published: 12/11/2019

Homeowners who were able to fix their mortgage into a two-year deal in October 2017, when mortgage rates were at a historic low, should consider taking advantage of the current competitive remortgage rates to avoid repayments at substantially higher standard variable rates (SVRs).

Data released by the Moneyfacts UK Mortgage Trends Treasury report shows that in October 2017, two year fixed mortgage rates were at a historic low, at an average of 2.20%. Homeowners who were able to lock their rate into a deal at that time have benefited from low mortgage repayments, especially as the average rate jumped to 2.33% a month later when the Bank of England increased the base rate from 0.25% to 0.50% in November 2017.

With the two year fixed rate deals taken out in October 2017 now coming to an end, homeowners should look at remortgaging, or else they will have to make repayments at their mortgage lender’s SVR, which with the average SVR rate at 4.90% in October 2019, is substantially higher than locking into a new fixed deal.

Darren Cook, finance expert at, explains: “Just over two years ago, the mortgage market reached the end of a period of aggressive competition, which saw the average two year fixed mortgage rate fall to its historical low of 2.20% in October 2017. Borrowers who took advantage of this increased competition between lenders before the base rate rise in November 2017 may have seen a difference of 2.70% between their previous fixed rate and last month’s average SVR (4.90%).”

Fixed rate deals

Fortunately, this year has seen a competitive mortgage market, which means that homeowners looking to remortgage can currently lock into some highly attractive deals. The lowest two year fixed rate deal currently being offered in the remortgage chart comes from NatWest Int Sol, which is offering a rate of 1.19% (3.8% APRC) fixed until 31 January 2022.

In addition to this, there are also competitive five year fixed rate remortgage deals available at the moment. Virgin Money currently offers a rate of 1.46% (3.6% APRC), which is fixed until 1 March 2025, while Skipton Building Society offers 1.46% (3.7% APRC) fixed until 31 December 2024.

Although locking a mortgage into a low rate is important when looking to remortgage, homeowners should also consider other factors when choosing a remortgage deal, including the product fee charged, the incentive package being offered and flexible features. To view all remortgage deals currently available, visit our remortgage chart.


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. Links to third parties on this page are paid for by the third party. You can find out more about the individual products by visiting their site. will receive a small payment if you use their services after you click through to their site. All information is subject to change without notice. Please check all terms before making any decisions. This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.

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