The average two year fixed rate has climbed to 4.59, the highest level in the last ten months. However, the average shelf life over the past twelve months has nearly halved to 14 days for 27 days.
However, the average two year tracker rates are travelling in the opposite direction and have fallen to its lowest level in more than two decades. The average tracker rate of 3.4 percent is lowest since 1998, according to Moneyfacts.co.uk.
Some borrowers have taken the “wait and see approach” in the last two years, said spokeswoman Michelle Slade, preferring to continue with a lender’s standard variable over a more expensive mortgage deal.
“Talk of an imminent base rate rise has caused a surge in the demand for new mortgage deals. Lenders appear to be trying to tempt borrowers off record low SVRs on to new tracker deals instead”, she said.
“Rates on tracker deals continue to be more competitive than fixed rate deals, but borrowers need to ensure they factor in the effect of any base rate rises on their monthly repayment when considering a new deal”, concluded Ms Slade.