Average two and five-year fixed mortgage rates now level

Rightmove’s daily mortgage tracker shows that the current average two-year fixed mortgage rate is currently level with the average five-year fixed mortgage rate.

Prior to July 2025, the last time this was the case was in September 2022 before the mini-Budget.

Both the average two and five-year fixed rate is currently 4.52%, down from an average rate of 5.25% this time last year.

Based on the average asking price of a home, this equates to a monthly mortgage payment of £1,518, compared to £1,650 last year – a saving of £132 per month (based on repaying the mortgage over 30 years and beginning with a 20% deposit).

The cheapest available mortgage rate currently available is a 60% LTV two-year fix at 3.69%. The cheapest rate has been a two-year fixed rate since April.

Matt Smith, Rightmove’s mortgage expert, commented: "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."