A number of lenders have started to offer record low rates for a two-year fixed-rate loan, with many providers offering rates of 1.99pc.
Borrowers with a 40pc deposit can pay £995 for a two-year fixed-rate deal at 1.99pc, from Yorkshire, Norwich & Peterborough and Chelsea building societies.
HSBC has gone even further by cutting its two-year fixed rate to 1.98pc. The deal is available to borrowers with a 40pc deposit and comes with a £1,999 fee or £1,499 for current account customers.
Halifax has also cut rates on a host of two-year rates available through intermediaries, including those for new-build and affordable new homes and luxury properties. Deals include a 90% loan-to-value (LTV) affordable housing mortgage down 0.50% to 5.99%, with a £999 fee.
The Post Office has introduced a few new mortgages including a two-year fixed rate of 3.75% with a £1,495 fee, up to 90% LTV, a three-year fixed rate of 2.68% with a £995 fee, up to £75% LTV.
The rates on deals with many other lenders have also fallen, with borrowers also experiencing good deals on other two, three and five year deals.
The rates for first-time buyers are less significant with an average two-year fix now standing at 4.11pc, compared with 4.26pc in December.
