Average mortgage rates drop by significant margins

Rachel Springall, Press Officer / Finance Expert 01603 476210 Email Rachel

Average mortgage rates drop by significant margins

Moneyfacts UK Mortgage Trends Treasury Report data reveals the average two-year fixed mortgage rate fell month-on-month by the biggest margin in over six months. The average two-year fixed mortgage rate has fallen to its lowest point since the start of September 2022, before the ‘mini-Budget’. The availability of product choice grew further, and the average shelf-life of a deal fell.

Average mortgage rates drop by significant margins

Average mortgage rates on the overall two- and five-year fixed rates fell by 0.14% and 0.08% to 5.18% and 5.10% respectively. The two-year fixed rate noted its biggest monthly fall since the start of October 2024 (0.16%).
The average two- and five-year fixed rates were last lower in September 2022 (4.24%) and November 2024 (5.09%) respectively.
At the start of May 2024, the average five-year fixed rate was 5.48%; compared to the start of this month, the rate is 0.38% lower at 5.10%. However, the average two-year fixed rate has fallen by 0.73% over the same period, down from 5.91% to 5.18%.
The average two-year fixed rate is 0.08% higher than the five-year equivalent but this is the lowest the gap has been since rates became inverted in October 2022.
The average shelf-life of a mortgage product fell to 19 days, from 21 days a month ago.
Product choice overall rose month-on-month, to 6,993 options, which is up year-on-year (6,565 – May 2024) and the highest number since October 2007 (7,421).
The average two-year tracker variable mortgage rate fell to 5.16%.
The average ‘revert to’ rate or Standard Variable Rate (SVR) fell to 7.58%. In comparison, the highest recorded was 8.19% during November and December 2023.

Average mortgage rates on the overall two- and five-year fixed rates fell by 0.14% and 0.08% to 5.18% and 5.10% respectively. The two-year fixed rate noted its biggest monthly fall since the start of October 2024 (0.16%).
The average two- and five-year fixed rates were last lower in September 2022 (4.24%) and November 2024 (5.09%) respectively.
At the start of May 2024, the average five-year fixed rate was 5.48%; compared to the start of this month, the rate is 0.38% lower at 5.10%. However, the average two-year fixed rate has fallen by 0.73% over the same period, down from 5.91% to 5.18%.
The average two-year fixed rate is 0.08% higher than the five-year equivalent but this is the lowest the gap has been since rates became inverted in October 2022.
The average shelf-life of a mortgage product fell to 19 days, from 21 days a month ago.
Product choice overall rose month-on-month, to 6,993 options, which is up year-on-year (6,565 – May 2024) and the highest number since October 2007 (7,421).
The average two-year tracker variable mortgage rate fell to 5.16%.
The average ‘revert to’ rate or Standard Variable Rate (SVR) fell to 7.58%. In comparison, the highest recorded was 8.19% during November and December 2023.

Mortgage market analysis
		May-23	May-24	Nov-24	Apr-25	May-25
Fixed and variable rate products	Total product 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	Shelf-life (days)	25	28	17	21	19
All LTVs	Average two-year fixed rate	5.26%	5.91%	5.39%	5.32%	5.18%
All LTVs	Average five-year fixed rate	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%
95% LTV	Average five-year fixed rate	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%
90% LTV	Average five-year fixed rate	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%
60% LTV	Average five-year fixed rate	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	Average two-year tracker rate	5.07%	6.12%	5.71%	5.20%	5.16%
Data shown is as at the first available day of the month, unless stated otherwise.
Source: Moneyfacts Treasury Reports

Mortgage market analysis
		May-23	May-24	Nov-24	Apr-25	May-25
Fixed and variable rate products	Total product 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	Shelf-life (days)	25	28	17	21	19
All LTVs	Average two-year fixed rate	5.26%	5.91%	5.39%	5.32%	5.18%
All LTVs	Average five-year fixed rate	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%
95% LTV	Average five-year fixed rate	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%
90% LTV	Average five-year fixed rate	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%
60% LTV	Average five-year fixed rate	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	Average two-year tracker rate	5.07%	6.12%	5.71%	5.20%	5.16%
Data shown is as at the first available day of the month, unless stated otherwise.
Source: Moneyfacts Treasury Reports

Rachel Springall, Finance Expert at Moneyfacts, said:

“The momentum of rate cutting was rife throughout April, with lenders rushing to tweak their mortgage ranges, leading to a drop in the average shelf-life of a mortgage to 19 days, down from 21 a month prior. Such vigorous activity led to notable cuts to the overall average two- and five-year fixed mortgage rates, seeing the biggest monthly fall to the two-year fixed rate in over six months. Borrowers looking for a new deal may also be pleased to see the average two-year fixed rate has reached a notable milestone, falling to its lowest point recorded since the start of September 2022, before the notorious ‘mini-Budget’, or fiscal announcement.

“Falling swap rates have been the driving force behind fixed rate mortgage cuts, and the movement has also fuelled a shortening gap between short- and longer-term fixed rate pricing. The inversion in rates could soon come to an end, with the rate gap between the average two- and five-year fixed mortgages now just 0.08%. Since the start of October 2022, the average two-year fixed rate has been higher than the five-year rate. However, borrowers who are worried about rate volatility in the months to come may still prefer a five-year fixed rate deal to secure their rate for longer, particularly as the overall average rate is at its lowest point for six months. There is more positive news for borrowers with smaller deposits, with the average two-year fixed mortgage at 90% loan-to-value dropping to its lowest point since October 2022 (5.33%) and product choice overall at 90% and 95% loan-to-value remains at a 17-year high (March 2008).

“Product choice continues to thrive, and this can create a positive outlook among borrowers. There will be millions of consumers coming off low fixed rate mortgages over the next year and they need both the support and appetite for new business from lenders to secure new deals. First-time buyers remain an integral part of the mortgage market, so any relief on stress testing or innovative products can make a huge difference to those struggling to find an affordable home. Borrowers excited by the arrival of cheaper mortgage rates would be wise to seek advice to assess the overall cost of any deal to ensure it’s the right choice for them.”

Rachel Springall, Finance Expert at Moneyfacts, said:

Notes to editors

Pioneering financial comparison technology for over 35 years.

Moneyfacts Group plc is the UK’s leading provider of retail financial product data. Used by virtually every bank and building society in the UK, and supplied to the Bank of England, Financial Conduct Authority, Financial Ombudsman Service, HM Treasury, Prudential Regulatory Authority and UK Finance.

Our expert research team monitors the thousands of mortgages, savings, credit card, personal loan, banking, life, pension and investment products in the UK.

Moneyfacts is the UK's leading independent provider of finance product data. For over 35 years Moneyfacts' information has been a key driver behind personal finance product decisions.

For more information about us please see our key facts.

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Notes to editors

Pioneering financial comparison technology for over 35 years.

Our expert research team monitors the thousands of mortgages, savings, credit card, personal loan, banking, life, pension and investment products in the UK.

Moneyfacts is the UK's leading independent provider of finance product data. For over 35 years Moneyfacts' information has been a key driver behind personal finance product decisions.

For more information about us please see our key facts.

Broadcast

Our broadcast suite enables our finance experts to appear in-vision for television, and we regularly comment live on national and regional radio.

To arrange an interview for radio or television, please contact our press department. We have an in-house broadcast room.

If you're looking for extra comment, a chart or more information, then please give us a call. We are always more than happy to help.

Rachel Springall Press Officer / Finance Expert

01603 476210

Email Rachel

Caitlyn Eastell Press & PR Executive

01603 476169

Email Caitlyn