This is the lowest rate since September 2008, reveals the Countrywide report.
Across the board, fixed rate and tracker mortgages have become significantly cheaper, with most major lenders becoming much more competitive on pricing, with many targeting the first time buyer and remortgage market.
Figures from the Bank of England also reflect this, showing that mortgage rates across two, three and five years terms are at their lowest level over the last 6 years.
Nigel Stockton, Financial Services Director at Countrywide said:
“Despite the ongoing pressures on lending institutions and the UK economy as a whole, we continue to see some of the cheapest ever remortgage fixed rate products being offered, with some 2-year rates on offer currently as low as 2.54%.
“Overall, the proportion of homeowners considering moving from their variable rate mortgage has subsided as the threat of rate rises has weakened.
"However, budgeting continues to be an area of key concern for home movers, which makes some of the competitive remortgage products currently available particularly at the lower loan to value (60% LTV and below) much more of a attractive option.”
Operating the UK’s largest network of mortgage consultants, recent figures show that the average 2-year fixed rate mortgage product applied for by Countrywide customers has fallen by 1.59 percent over the last two years.
Similarly, rates for 2-year tracker mortgages have fallen by 0.78 percent.
As the gap between monthly payments for tracker and fixed rate mortgages has narrowed, this provides homeowners with a much more compelling proposition to take advantage of the competitive remortgage products on offer.
