The average two-year fixed mortgage rate for those with a 40% deposit is now cheaper than the average five-year fixed equivalent, the first time this has happened since the mini-Budget.
The average two-year fixed, 60% loan-to-value (LTV) mortgage rate is now 4.18%, while the five-year equivalent is 4.19%.
The gap between average two-year fixed rates and five-year fixed rates is closing, with the 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 3.86%, while the lowest available five-year fixed rate is 3.89%
Matt Smith, Rightmove’s mortgage analyst, 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.”
Average rates for 2-year and 5-year fixed-rate mortgages
| Term | Average rate | Weekly change | Yearly change |
| 2-year fixed | 4.80% | -0.04% | -0.43% |
| 5-year fixed | 4.70% | -0.02% | -0.14% |
Lowest rates for 2-year and 5-year fixed-rate mortgages
| Term | Lowest rate | Weekly change | Yearly change |
| 2-year fixed | 3.86% | +0.00% | -0.60% |
| 5-year fixed | 3.89% | -0.08% | -0.24% |
Average fixed-term mortgage rates for home-buyers with 5-10% deposits
| Loan to Value (LTV) | Term | Avg rate 10 Apr 2025 |
Avg rate 17 Apr 2025 |
Weekly Change | Yearly Change |
| 95% | 2-year-fixed | 5.57% | 5.54% | -0.03% | -0.44% |
| 95% | 5-year-fixed | 5.34% | 5.35% | +0.01% | -0.17% |
| 90% | 2-year-fixed | 5.14% | 5.09% | -0.05% | -0.41% |
| 90% | 5-year-fixed | 4.89% | 4.86% | -0.03% | -0.17% |
Average fixed-term mortgage rates for home-buyers with 15-25% deposits
| Loan to Value (LTV) | Term | Avg rate 10 Apr 2025 |
Avg rate 17 Apr 2025 |
Weekly Change | Yearly Change |
| 85% | 2-year-fixed | 4.80% | 4.76% | -0.04% | -0.45% |
| 85% | 5-year-fixed | 4.68% | 4.65% | -0.03% | -0.12% |
| 75% | 2-year-fixed | 4.64% | 4.59% | -0.05% | -0.46% |
| 75% | 5-year-fixed | 4.56% | 4.54% | -0.02% | -0.15% |
Average fixed-term mortgage rates for home-buyers with 40% deposits
| Loan to Value (LTV) | Term | Avg rate 10 Apr 2025 |
Avg rate 17 Apr 2025 |
Weekly Change | Yearly Change |
| 60% | 2-year-fixed | 4.25% | 4.18% | -0.07% | -0.49% |
| 60% | 5-year-fixed | 4.22% | 4.19% | -0.03% | -0.10% |
These rates are provided by Podium and are an average based on 95% of the mortgage market. All rates are based on products with a circa £999 fee.
Toby Leek, NAEA Propertymark president, commented: “This is a huge positive for those who qualify for the required loan to value criteria when looking at their mortgage options. It demonstrates yet further positivity for people to seek an attractive mortgage deal for themselves.
“While the mortgage market tends to be very reflective of the wider economy, today’s news does show strong market confidence in bringing more attractive deals to the fold.”
