Average 60% LTV two-year fix now cheaper than five-year rate

The average two-year fixed mortgage rate at 60% LTV is now cheaper than the average five-year fixed equivalent, the first time this has happened since the mini-Budget.

The average two-year fix at 60% LTV is now 4.18%, while the five-year equivalent is 4.19%.

The gap between average two-year and five-year fixed rates is closing, with 60% LTV the first product bracket to have cheaper average two-year rates since the mini-Budget.

The lowest available two-year fixed rate is currently 3.86%, while 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. 

"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."