The average fixed mortgage rate of two years has decreased from month to month by the highest margin in more than six months, the latest trends of the Moneyfacts UK Mortgage Treasure Data have revealed.
The average fixed mortgage rate of two years has fallen to the lowest point since the beginning of September 2022, before the ‘mini budget’. The availability of product choice grew even more, and the average life of an agreement fell.
The average mortgage rates in the two -year general fixed rates fell by 0.14% and 0.08% to 5.18% and 5.10% respectively. The two -year fixed rate indicated its largest monthly drop since the beginning of October 2024 (0.16%).
The average fixed rates of two years and five years were the last time lower in September 2022 (4.24%) and November 2024 (5.09%) respectively.
At the beginning of May 2024, the average fixed rate of five years was 5.48%; Compared to the beginning of this month, the rate is 0.38% less than 5.10%. However, the average fixed rate of two years has decreased by 0.73% during the same period, below 5.91% to 5.18%.
The average fixed rate of two years is 0.08% higher than the equivalent of five years, but this is the lowest that the gap has been invested in October 2022.
The average life of a mortgage product fell to 19 days, from 21 days of the month.
General election of the Rose Product Choice month to month, to 6,993 options, which increases year after year (6,565 to May 2024) and the highest number from October 2007 (7,421).
The average two -year tracker variable mortgage rate fell to 5.16%, while the average ‘revert to’ the standard variable rate (SVR) fell to 7.58%. In comparison, the highest registered, 8.19% were relieved in November and December 2023.
| Mortgage Market Analysis | ||||||
| May 23 | May 24 | Nov-24 | APR-25 | May 25 | ||
| Fixed and variable rate products | Total products count: all LTVs | 5,264 | 6,565 | 6,402 | 6,870 | 6,993 |
| Product count – 95% LTV | 212 | 347 | 358 | 442 | 462 | |
| Product count – 90% LTV | 675 | 791 | 748 | 845 | 876 | |
| Product count – 60% LTV | 676 | 748 | 758 | 797 | 786 | |
| All products | Useful life (days) | 25 | 28 | 17 | 21 | 19 |
| All LTVs | Average two -year fixed rate | 5.26% | 5.91% | 5.39% | 5.32% | 5.18% |
| FIXED FIVE RATE Average | 4.97% | 5.48% | 5.09% | 5.18% | 5.10% | |
| 95% LTV | Average two -year fixed rate | 5.94% | 6.14% | 5.83% | 5.81% | 5.63% |
| FIXED FIVE RATE Average | 5.28% | 5.64% | 5.40% | 5.62% | 5.58% | |
| 90% LTV | Average two -year fixed rate | 5.50% | 6.12% | 5.70% | 5.59% | 5.42% |
| FIXED FIVE RATE Average | 5.08% | 5.57% | 5.24% | 5.33% | 5.24% | |
| 60% LTV | Average two -year fixed rate | 4.83% | 5.45% | 4.86% | 4.79% | 4.65% |
| FIXED FIVE RATE Average | 4.57% | 5.08% | 4.66% | 4.69% | 4.58% | |
| All LTVs | Standard variable rate (SVR) | 7.37% | 8.18% | 7.95% | 7.60% | 7.58% |
| All LTVs | Two -year tracker average rate | 5.07% | 6.12% | 5.71% | 5.20% | 5.16% |
| The data shown are on the first day available in the months, unless otherwise indicated. | ||||||
| Source: Moneyfacts Treasury Reports | ||||||
Rachel Springall, Moneyfacts finance commentator, said: “The tariff cutting impulse was covered in April, with lenders to hurry to modify their mortar ranges, which led to a fall in the average useful life or a mortar 19 days from the two of the two of the two and of the two of the five and the five of the five of the five of the time. See the highest fixed monthly drop rate in more than six months.
“The fall in exchange rates has the cuts of the fixed mortgage of the faith of the driving force, and the movement has also driven a shortened gap between the short -term pricing shorts. The investment in the rates could the bar could the bar, for purposes YY, YYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY. 95% and 95% in general.
“The choice of the product continues to thrive, and this can create a positive perspective among the borrowers. There will be millions of consumers who will leave the mortgages of low fixed rate during the next year and need both the support and the appetite for new businesses, from lenders to ensure new agreements.
