A spokesperson for Skipton said:
"We recently launched new two year fixed products, one including our lowest ever fixed interest rate, and find that these are more popular with customers at present."
Seven-year fixes will remain available through intermediaries for the foreseeable future. The Real Life Lending 7 year fixed Intermediary only exclusives include a purchase-only deal up to 90% LTV at 4.89%, a remortgage product at 3.19% up to 60% LTV and a purchase or remortgage option at 3.49% up to 75% LTV.
The cuts follow an increase in the popularity of ten-year fixes, with availability on the market exploding in recent months ahead of an expected interest rate rise in the next year.
Research from Moneyfacts found that the number of deals has risen from eight in January 2014, to 22 in October, and currently stands at 77, meaning the sector has increased five-fold in just one year.
Additionally, the interest rates being offered have fallen to historic lows, with an average rate for a 10-year deal falling from 4.23% in January 2014 to just 4.17% today.
