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Two-year trackers fall to lowest rate since 1988

The average rate on a two-year tracker has fallen to 3.4 per cent, its lowest level since 1988, according to

But the average two-year fixed rate has risen to 4.59 per cent, its highest level in ten months. Over the past year, the average shelf life has nearly halved from 27 days to 14 days.

Spokeswoman Michelle Slade says some borrowers have taken a “wait and see approach” over the last two years, preferring to remain on a lenders standard variable rate rather than move to a more expensive mortgage deal.

She says: “Talk of an imminent base rate rise has caused a surge in the demand for new mortgage deals. Lenders appear to be trying to tempt borrowers off record low SVRs on to new tracker deals instead.

“Rates on tracker deals continue to be more competitive than fixed rate deals, but borrowers need to ensure they factor in the effect of any base rate rises on their monthly repayment when considering a new deal.”



The complex question of simplified products

The scene is a draughty Treasury office in Whitehall. The minister is discussing insurance with his permanent secretary. M: Sir Humphrey, I wanted to get your views on simplified products and the FSA’s paper.Sir H: Actually minister, around here, the FSA is so last decade.M: But simplified products really is a very worth- while initiative.Sir […]

Goldman Sachs MD to replace Andrew Sentance on MPC

Goldman Sachs’ managing director Ben Broadbent will replace Andrew Sentence as an external member of the Monetary Policy Committee at the beginning of June. Broadbent became managing director at Goldman Sachs in 2006, prior to which he was senior European economist. In the past he has also worked at the Treasury and the Bank of […]

The death of retirement – a boost for protection?

According to our recent report on the death of retirement, changes in workplace pension provision mean that coming generations of retirees could have a radically different experience of retirement from their parents. The average contribution rate into an old-style final salary pension was around 20% of total wages, the statutory minimum for a new automatic […]


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