Within the residential mortgage sector this week, Halifax, HSBC, Yorkshire Building Society, Virgin Money, Bank of Ireland UK and Bank of Ireland UK for Intermediaries revealed new sub-5% 2-year fixed mortgages.
The latest research from Moneyfactscompare.co.uk analysed these latest developments in the market, with many borrowers pleased to see the arrival of more sub-5% options this week.
The analysis revealed that the start of November, only one lender had 2-year fixed mortgages priced below 5% (Danske Bank and these deals were available to Northern Ireland only.)
In addition, there were no lenders offering a sub-5% 2-year fixed mortgage at the start of October.
Rachel Springall, finance expert at Moneyfactscompare.co.uk, said: “It’s encouraging to see cheaper mortgages on the market for borrowers, particularly the return of 2-year fixed mortgages priced below 5%.
“This is great news for those who do not want to commit to a longer-term fixed deal.
“Several large lenders have slashed fixed mortgage rates and there is much anticipation for more cuts in the coming weeks.
“As we head ever closer to the year-end, lenders will be weighing up both the current competition and their own lending targets, so it’s a promising market for consumers looking for a new deal.”
She added: “As always, it is imperative borrowers assess the overall true cost of any mortgage deal instead of assuming the lowest rates are the best choice, as some of the lowest priced deals carry high fees or few incentives.
“Seeking independent advice to weigh up all the options is wise, especially if borrowers have limited upfront cash to pay for any product fees or legal costs.”
