The best UK two-year fixed-rate mortgages 2016
On the hunt for a short-term fixed rate mortgage? These are the cheapest two-year fixed rates to go for whatever your deposit size.
There’s never been a better time to get a two-year fixed rate mortgage in the UK.
Since the Bank of England cut the Base Rate to a record low of 0.25% last month, lenders are starting to slash rates on these types of deals.
For example, HSBC has launched a two-year fixed rate product charging just 0.99% for those with a 40% deposit. However, there’s a hefty £1,499 fee to consider.
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Why go for a two-year deal?
Two-year fixed rate mortgages are a good bet if you’re looking for manageable monthly repayments that are guaranteed for a short period.
They also tend to offer the most competitive rates compared to longer lasting five- and 10-year options and give you flexibility so you aren’t tied down in the future when your plans might take an unexpected turn.
If you’re interested in a two-year fixed rate mortgage we’ve rounded up the best rates to go for right now.
The best two-year fixed rate deals
Here are the best rates on two-year fixe rate mortgages compiled using the loveMONEY mortgage comparison tool for 60%-95% Loan to Value (LTV).
|
Lender |
LTV |
Rate |
Fee |
ERCs |
|
60% |
0.99% |
£1,499 |
2% in first year, then 1% until the end of fixed period. |
|
|
65% |
1.19% |
£1345 |
2% in first year, then 1% until the end of fixed period. |
|
|
70% |
1.29% |
£1,499 |
2% in first year, then 1% until the end of fixed period. |
|
|
75% |
1.28% |
£1,345 |
2% in first year, then 1% until the end of fixed period. |
|
|
80% |
1.48% |
£1,450 |
3% in first year, then 2% until the end of fixed period. |
|
|
85% |
1.53% |
£1,545 |
2% in first year, then 1% until the end of fixed period. |
|
|
90% |
1.94% |
£1,345 |
2% in first year, then 1% until the end of fixed period. |
|
|
95% |
3.47% |
£1,545 |
2% in first year, then 1% until the end of fixed period. |
As you can see the rates on the top deals tend to command a hefty fee. So we’ve also picked out the best rates on two-years deals with a fee of under £500.
|
Lender |
LTV |
Rate |
Fee |
ERCs |
|
60% |
1.59% |
£299 |
2% in first year, then 1% until the end of fixed period. |
|
|
65% |
1.69% |
£0 |
2% in first year, then 1% until the end of fixed period. |
|
|
70% |
1.69% |
£299 |
2% in first year, then 1% until the end of fixed period. |
|
|
75% |
1.74% |
£0 |
2% in first year, then 1% until the end of fixed period. |
|
|
80% |
1.84% |
£299 |
2% in first year, then 1% until the end of fixed period. |
|
|
85% |
1.94% |
£299 |
2% in first year, then 1% until the end of fixed period. |
|
|
90% |
2.49% |
£0 |
2% in first year, then 1% until the end of fixed period. |
|
|
95% |
3.50% |
£195 |
2% in first year, then 1% until the end of fixed period. |
Other options
A shorter fix will give you some peace of mind and a competitive rate.
However, the downside is that you will need to remortgage more often than with longer lasting deals, which means paying the associated costs and doing the paperwork again.
If you’ve come to the end of your deal take a look at our how to remortgage guide.
Take a look at the best five-year fixed rate mortgages and the best 10-year fixed rate mortgages for longer lasting deals.
Alternatively, if you don’t mind a bit of uncertainty take a look at the best tracker mortgage rates to see if these deals are more suited to your needs.
Compare mortgages with loveMONEY
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