The average rate for a two-year fixed mortgage is now 2.28 per cent, the lowest in the last 12 months likely due to the recent withdrawals of higher loan to value (LTV) deals.

According to data from Moneyfacts, it is down from both last month’s 2.42 per cent average, and the 2.47 per cent rate recorded in April last year.

Additionally, the current average rate is only slightly higher than January 2017’s record low of 2.20 per cent.

High LTV exodus

Moneyfacts said the withdrawal of higher loan to value products in recent days was likely to be a “contributing factor” to the drop as the rates for these mortgages are typically higher.

The average rate for a two-year fixed has seen a steady drop in the last few days, recorded at 2.35 per cent on 27 March before dropping to its current rate today.

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Eleanor Williams, a spokesperson for Moneyfacts, said: “There has been a significant reduction in the number of mortgage products available to new borrowers this week, in part as a result of the operational difficulties that mortgage lenders are currently facing.

“This has included the withdrawal of some purchase products but also many higher loan-to-value deals. The drop in availability of mortgage products for those with lower deposits or equity in their homes is likely a contributing factor as to why the average mortgage rates have dropped, as typically these are higher rate products.”

Other mortgage rates

As of 3 April, the average rate for a five-year fixed mortgage is 2.58 per cent while a two-year tracker mortgage sits at 1.88 per cent.