3 year fixed rates fall to new low

Three year fixed rates are now sitting at their lowest level in two years.

The average three year fixed rate is now just 7.38 per cent – 8 basis points above the current average standard variable rate of 7.30 per cent. 36 lenders now offer three-year fixed rates below that variable average.

Analysts said lenders are offering attractive fixed rate home loan deals to help kick-start lending but also to retain current customers with longer-term deals as exit fees on variable rate loans are banned.

Source: The Advisor