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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 It is now over 6 months old so the content may be out of date.

Derin Clark

Derin Clark

Online Reporter
Published: 04/07/2019

Based on our latest research into mortgage rates, the average rate for a two-year fixed mortgage at 80% and below loan-to-value (LTV) has increased in the past 11 months. Our research also shows that rates at the 70% LTV tier increased the most by 0.19%, whereas higher LTVs such as the 95% tier saw an average reduction of 0.70% during this period.

Rates could rise further as competition for mortgages slows

This year has seen intense competition within the mortgage market, which has resulted in some providers, such as Tesco Bank, leaving the market altogether. However, the recent research from suggests that this competition could be coming to an end, as the data shows in the past month that the average rate at all mortgage tiers, apart from those at 60% and 65% LTV, has stayed the same or increased.

Average two-year fixed rates

  60% LTV 65% LTV 70% LTV 75% LTV 80% LTV 85% LTV 90% LTV 95% LTV
Aug-18 1.89% 1.97% 2.35% 2.30% 2.41% 2.51% 2.71% 3.95%
May-19 1.90% 2.00% 2.54% 2.32% 2.44% 2.45% 2.63% 3.26%
Jun-19 1.91% 2.01% 2.53% 2.37% 2.45% 2.48% 2.64% 3.25%
Jul-19 1.90% 1.99% 2.54% 2.37% 2.46% 2.49% 2.68% 3.25%

Source: 2019

Darren Cook, finance expert at, said: “It seems that this is possibly the end of widespread mortgage interest rate cuts due to competition for the time being. In fact, the only tier to see the average two-year fixed rate fall since May is the 65% LTV tier, perhaps suggesting providers are now focusing their attention at the less risky end of the sector.”

What is the best two-year fixed rate mortgage currently available?

While average rates for lower-tier LTV mortgages have seen increases in rates since the base rate rise in August last year, 60% LTV mortgages still remain the most competitive. The current top rate is from NatWest, offering a rate of 1.38% fixed to 31 October 2021 and then reverts to 4.24% (APRC 3.8%). Alternatively, at the other end of the LTV range, the top rate in the 95% LTV mortgage chart is 2.59%, available from Newcastle Building Society, which is fixed to 31 July 2021 and then reverts to 4.49% (APRC 5.2%).

What is the best five-year fixed rate mortgage currently available?

While the two-year fixed rate mortgage charts offer the best rates available, borrowers willing to pay more to fix their mortgage for a longer term could consider a five-year fixed rate mortgage. The top rate in the five-year fixed rate mortgage chart for a 60% LTV is 1.75% from Skipton Building Society, which is fixed to 30 September 2024 and then reverts to 4.99% (APRC 3.8%) – an initial rate that is 0.37% more than the top rate being offered in the two-year fixed rate chart for the same LTV.

Meanwhile, a five-year fixed rate in the 95% LTV mortgage chart is just 0.16% greater than that being offered in the two-year fixed rate chart. The top rate on offer for a 95% LTV is from Barclays Mortgage, offering 2.75% fixed to 31 October 2024, after which it reverts to 4.24% (APRC 3.7%).


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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