According to RightMove, the average fixed mortgage rate (40% deposit) in two years is below the five-year average for the first time in two and a half years.
A typical two-year 60% loan to value fixed is now 4.18%, while a five-year loan equals 4.19%.
This is the two-year ratio at this level equals five years to five years since former Prime Minister Liz Truss’ mini budget in September 2022.
The property location says lenders may find it easier to price short-term loans due to rising uncertainty caused by global tariffs.
It added that the gap between an average of two-year and five-year restoration has ended overall.
It noted that the average two-year rate was 4.80%, down 43 basis points from the same period last year, while the five-year average was 4.70%, which is only 14bps lower than 12 months ago.
The lowest two-year fixed volume on the market was 3.86%, down 60bps from a year ago, while the lowest five-year fix available was 3.89%, down 24bps during the same period, the company added.
Mortgage expert Rightmove Matt Smith said: “For those with the biggest deposits, a typical two-year fixed-rate mortgage is now below the same five years, which is the first time we’ve seen since the mini budget.
“This reflects the growing trend of shorter prices for lenders than long-term transactions. Global tariff situations may accelerate the move.
“The average interest rate trend in the mass market should be followed gradually, with bank reductions in May that will provide lenders with more headroom to further reduce interest rates.”
