Average two-year fixed mortgage rate for 60% LTV now cheaper than five-year rate
April 17, 2025
- The average two-year fixed mortgage rate for those with a 40% deposit (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 fixed, 60% 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 expert says: “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% |
You May Also Enjoy
UK House Price Index for December 2025
The latest UK House Price Index shows that: The average monthly rate of house price growth in December was -0.7%. Average UK house price annual inflation was 2.4% in the 12 months to December 2025. As a result, the average UK house price currently sits at £270,000. Here are some thoughts from the Industry.…
Read More 
10 things all tenants need to know when renting now
The Renters’ Rights Act 2025 received Royal Assent on 27th October 2025 and will introduce major reforms to private renting in England. The first raft of measures affecting tenants will come into force on 1st May this year. So, whether you currently have a tenancy agreement or are planning to rent this year, here are…
Read More 
Average monthly mortgage payment down £119 year-on-year in January
Rightmove’s monthly mortgage tracker shows that the national average monthly mortgage payment in January was £1,592, based on January’s average asking price for a home of £368,031: Average monthly mortgage payments are £119 (7%) lower than a year ago, despite the average price of a home rising by 0.5% year-on-year in January A big January…
Read More 
Homes with a great view command premiums
Buyers are paying a 28% price premium for homes with a great view The latest research from Yopa reveals that homebuyers who want to secure a property with a great view are going to have to pay an average price premium of 28%, rising beyond 35% in the North East. Every house has windows, and…
Read More 
More sellers looking to enter the property market
The latest research from eXp UK has revealed that an increasing number of home sellers are entering the UK market, as demonstrated by recent growth in online search interest for terms such as ‘estate agent’ and ‘best estate agent’. Previous research from eXp UK recently found that sellers started reentering the market in the opening…
Read More 
Non-standard home insurance cover and how to get it right
Leading insurer provides the low-down on non-standard home insurance cover and how to get it right Most home insurance policies in the UK are designed for ‘standard’ homes, but not every home is considered standard. Whether the property is built with timber frames, has a flat roof or is a listed building, it may fall…
Read More