Five-year fix drops four basis points
Weekly rate watch: five-year fix drops four basis points
The average five-year fixed rate has fallen by four basis points, dropping from 2.83 per cent to 2.79 per cent, according to data collected by Moneyfacts.
Looking at the average two-year fixed rate, it has fallen for the first time since the start of July, dropping to 2.47 per cent.
This time last year the average two-year fixed rate was seven basis points higher at 2.54 per cent.
Average rates in the 60 per cent LTV category and the 70 per cent LTV category both fell, from 1.86 per cent to 1.85 per cent, and from 2.58 per cent to 2.55 per cent, respectively.
In addition, average rates in the 75 per cent LTV category declined from 2.36 per cent to 2.35 per cent, and average rates in the 80 per cent LTV category dropped from 2.46 per cent to 2.45 per cent.
The average rates in the 85 per cent LTV category also fell, from 2.49 per cent to 2.47 per cent, and in the 95 per cent LTV category from 3.24 per cent to 3.23 per cent.
Meanwhile, average rates in the 65 per cent LTV category and the 90 per cent LTV category remained unchanged.
Moneyfacts finance expert Darren Cook says: “Average rates have dropped across the board this week. Swap rates have fallen, which has had a knock-on effect.
“The average five-year swap rate is now lower than the average two-year swap rate, 0.63 per cent and 0.68 per cent, respectively.
“Lenders are narrowing the gap between the average two- and five-year fixed rates in order to encourage customers to move to a longer-term mortgage.”
Source: Mortgage Strategy