"It is not only the average two-year variable tracker that has remained unchanged, as over the past month every LTV average has experienced the same lack of movement."
The average two-year rate is only 4bps lower than in February 2016, dropping from 2.02% last year to 1.98% this month.
Moneyfacts says the lack of appetite can be largely explained by lenders’ concerns over the uncertainty of the economic outlook - instead of focusing on both fixed and variable rate products for a balanced range, they appear to be pushing their fixed rate range to protect their mortgage book.
Charlotte Nelson, Finance Expert at Moneyfacts, said: “The stagnation in the two-year variable tracker rate signals an interesting time in the mortgage market. Providers do not seem to be active in this sector of the market and this is reflected by the fact that it is not only the average two-year variable tracker that has remained unchanged, as over the past month every loan-to-value average has experienced the same lack of movement.
“Back in 2009, when the Bank of England cut the base rate to 0.50%, variable rates suddenly became the black sheep of the market, with many providers withdrawing them completely. However, the recent cut to the base rate has not had this effect. In fact, product numbers remain strong and it is instead as if providers simply lack the desire to compete in this area.
“Despite the record low base rate, figures from the CML show that the balance of outstanding mortgages has swayed in favour of fixed mortgages and away from variable ones. Clearly borrowers are now recognising that, with all the competition in the market, fixed mortgages can offer a better deal and a promise of security in uncertain times.”
