Average two-year fix drops half a basis point: Moneyfacts

The average two-year fixed rate has fallen half a basis point from last week, according to Moneyfacts.

The rate currently stands at 2.47 per cent, which is five basis points higher then it was this time last year.

The 65 per cent LTV category has seen its average two-year fixed rate fall from 2.03 per cent to 2.01 per cent, the 75 per cent LTV category has also fallen, from 2.34 per cent to 2.31 per cent, the 80 per cent LTV category from 2.44 per cent to 2.43 per cent, the 85 per cent LTV category from 2.46 per cent to 2.44 per cent, and the 95 per cent LTV category from 3.29 per cent to 3.27 per cent.

Meanwhile, the 70 per cent LTV category has risen, from 2.52 per cent to 2.53 per cent.

Furthermore, both the 60 per cent LTV category and the 90 per cent LTV category have remained unchanged, at 1.91 per cent and 2.63 per cent respectively.

Moneyfacts finance expert Darren Cook comments: “The larger drop in individual LTV categories, compared with the small decline in the overall figure is due to the LTV categories having been rounded up, which has led to it appearing as though there has been less change.

“The market is expecting rates to be cut, and with the Bank of England potentially cutting the base rate if we get into economic trouble in the coming months, people are expecting reductions.”

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