Rightmove noted that before July 2025, the previous time that the average two- and five-year fixed rates were level was September 2022, just before the mini Budget.
The average two-year fixed rate is 0.74% down on last year, while the average five-year fixed rate is 0.35% down on the same period last year.
The cheapest average two- and five-year fixed rates are 3.69% and 2.84% respectively. These are 0.7% and 0.19% lower than this time last year.
At 60% loan to value (LTV), the average two- and five-year fixed rates are 3.9% and 4.03%, which are falls of 0.69% and 0.16% year-on-year.
Going up to 75% LTV, the average two-year fixed rate is 4.31%, while the average five-year fixed rate is 4.36%. These are falls of 0.77% and 0.37% annually.
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Within the 85% LTV range, the average two-year fixed rate is 4.41% and the average five-year fixed rate is 4.41%, representing declines of 0.86% and 0.5% year-on-year.
At 90% LTV, the average two- and five-year fixed rates are 4.73% and 4.67%, declines of 0.85% and 0.45% year-on-year.
Going up to 95% LTV, the average two-year fixed rate is 5.19% and the average five-year fixed rate is 5.13%. These are falls of 0.77% and 0.35% compared to the same period last year.
Matt Smith, Rightmove’s mortgage expert, said: “Over the last week, average mortgage rates have remained pretty flat in the build-up to next week’s interest rate decision. Expectations are currently set on a cut next week, and I expect lenders will use this moment as an opportunity to reduce mortgage rates a little further.
“Rate drops have been very slow and steady this year, but someone looking to take out a mortgage right now is likely to see a notable reduction in the rate they’d have been offered this time last year, particularly someone looking to fix for two years. With average two-year and average five-year fixed currently level, it would appear to only be a matter of time before the typical two-year rate is cheaper than the five-year equivalent.”
