Rates on two-year mortgage fixes hit their highest level in a year!
The typical two-year fix-rate mortgage this week hit 2.4%, up from lows of 2.17% in September. (data from Moneyfacts.co.uk)
Over the past month alone the average rate has lifted from 2.34% and is now at its highest level in a year.
The Bank of England raised interest rates for the first time in a decade in November, taking the base rate to 0.5%.
“This has caused the average two-year fixed rate to start creeping up, and this new trend is showing no signs of abating yet.
“With rates still low, it is difficult for providers to swallow the increased cost by any means other than increasing the rates on offer.”
“The only way from here appears to be up, so borrowers who are sitting on their Standard Variable Rate, or coming to the end of their deal, would be wise to look for a fixed rate now.
“It is now important that they act fast to ensure they get the best possible.”
Here at Abraham Associates, we are ready to help secure your Remortgage rate and take advantage of the lowest rates available while they are still around.