Average two-year rate at 2.53%

Average two-year rate at 2.53% 1024 576 NGI Residential Mortgages

Moneyfacts data shows that the average two-year fixed rate mortgage has ticked up slightly to 2.53 per cent.

On 19 October, the rate stood at 2.52 per cent, coming off the back of a rate of 2.48 per cent, its lowest average since last April.

Moneyfacts finance expert Charlotte Nelson comments: “We recently saw a rise as a handful of providers who typically lend to riskier borrowers upped their rates, which dragged the average rate up slightly.”

Nelson refers to this as a “blip in the road,” saying that the subsequent stagnation is a more realistic picture of what’s going on.

“Since [said bump] we’ve seen a stabilisation. The economy is uncertain, and the unwillingness of lenders to either cut or up their product rates is a reflection of this uncertainty,” she adds.

“For lenders and borrowers, the focus is now on longer-term fixed rates, such as five years.”

A mid-October Moneyfacts predicted that the month was significant in that it would mark the end of the “lowest-ever” average two-, three-, and five-year rates.

* Content Source – Mortgage Strategy