Archive article
The price war on mortgage products in 2021
This article is an archived piece from 2021, when competition between lenders briefly pushed mortgage rates to historic lows. It's kept for reference — for current market context, see the links below.
- The lowest rate for a 2-year fixed remortgage fell to 2.45% for 95% LTV (or 95% mortgage). At 90% LTV, the rate dropped to1.69% and, at 85% LTV, the rate went down to 1.34%%.
- For a 3-year fixed mortgage, again, the most notable changes occurred for 95% and 90% mortgages, where the average rate for each decreased.
- The pattern is repeated also in the case of 5-year fixed-rate mortgages. For an LTV of 95% the rates could be as low as 2.89%, at 90% LTV 2.39%%, and at 85% LTV the rate can be as low as 1.91%.
- The 10-year fixed rate had changes too up to 75% LTV, with one lender offering a 1.95% fixed rate.
Is now a good time to get a mortgage? Will mortgage rates stay low?
Frequently asked questions
No. Rates move constantly with the Bank of England base rate and wider economic conditions. This article is kept as a historical record rather than current guidance.
See our regularly updated blog and calculators, or speak to an adviser for rates relevant to your circumstances today.
Lender competition, the Bank of England base rate, and wider economic conditions such as inflation all play a part in how mortgage rates move over time.
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