Average two-year fixed rates at 60% LTV cheaper than five-year deals for first time since mini Budget, Rightmove says

The average two-year fixed rate at 60% LTV is 4.18%, while the average five-year fixed rate at the same LTV tier is 4.19%.

These are weekly drops of 0.07% and 0.03% respectively, with the two-year fixed rate down 0.49% and the five-year fixed rate lower by 0.1% annually.

Rightmove said the gap between average two- and five-year fixed rates is becoming narrower. The 60% LTV tier is the first product bracket to have cheaper average two-year fixed rates since the mini Budget.

The lowest available two-year fixed rate currently is around 3.86% and the lowest available five-year fixed rate is 3.89%.

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.

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“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.”