The average two-year fixed mortgage rate with a 40% deposit (60% LTV) is now cheaper than the five-year fixed equivalent, the first time this has happened since the mini-Budget, Rightmove analysis shows.
Two-year fixed 60% LTV mortgages now have a typical rate of 4.18%, against 4.19% for a five-year fixed.
Matt Smith, Rightmove’s mortgage expert, said: “For those with the largest deposits, a typical two-year fixed rate mortgage is now lower than the equivalent five-year, the first time we’ve seen this since the mini-Budget.
“This reflects the growing trend that it’s becoming cheaper for lenders to price shorter-term rather than longer-term deals. The global tariffs situation has likely accelerated this move.
“Mass-market average rate trends should gradually follow, and a Bank Rate cut in May will give lenders some more headroom for further rate cuts.”
The lowest available two-year fixed rate is 3.86%, while the lowest available five-year fixed rate is 3.89%.
