Are the days of the ultra-cheap mortgage numbered? With the Bank of England looking ever more likely to start raising interest rates from the “emergency” lows they’ve been at for the past six years or so, they might be.
According to the Daily Mail, lenders including Barclays, Santander and Yorkshire Building Society have all “moved to increase rates and pulled cheap deals”. Barclays has bumped the rate on its cheapest ten-year fix up from 2.99% to 3.25%, for example, while it’s withdrawn its 1.59% two-year fix altogether. Meanwhile, the British Bankers’ Association reports a surge in the number of people remortgaging – the number of approvals of loans for remortgaging was up by 20% in the year to June.
Rates are, of course, climbing from a low base – as Charlotte Nelson of moneyfacts.co.uk points out, the average two-year fix is currently 2.75%, down from 3.67% this time last year.
But with the economy in the UK looking relatively healthy, the Bank is likely to raise rates more than once (if only so there’s room to cut them again when the hard times inevitably roll around again), then now might be a good time to review your mortgage deal. We look at some of the best remaining two-year offers below.
| Type | Provider | Rate type | Initial rate | Initial period | Max loan-to-value | Product fees |
|---|---|---|---|---|---|---|
| Fixed rate | Post Office Money | Fixed | 1.05% (then 4.49%) | Until 30/09/2017 | 60% | Yes |
| First-time buyer | The Co-operative Bank | Fixed | 2.46% (then 4.74%) | Until 31/08/2017 | 90% | Yes |
| Fees free | Post Office Money | Fixed | 1.65% (then 4.49%) | Until 30/09/2017 | 60% | No |
| Tracker | Chelsea Building Society | Tracker | 0.98% (then 5.45%) | Until 31/07/2017 | 65% | Yes |