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
Mortgage affordability on course for 2021 levels
Mortgage affordability could be on course to return to its most manageable level in almost five years, according to exclusive new analysis from INTEREST by Moneyfacts, as easing rates and rising incomes restore some breathing space for borrowers. The research shows that average mortgage payments, which peaked at close to half of gross monthly income…
Read More 
City house prices soar
The latest research from Property DriveBuy reveals that house prices in UK cities are significantly outperforming both coastal and countryside locations, rising by an average of 3.4% over the past year, well ahead of the wider UK market which has seen growth of 2.5%. And while countryside homes have also seen a price increase, the…
Read More 
Buyers return to housing market
2026 starts in line with 2024 with buyer demand 9% down on last year’s strong start Buyers are returning to the housing market at the start of 2026 as confidence improves and mortgage rates fall, but a growing number of homes for sale is giving buyers more choice and reshaping market conditions, according to Zoopla’s…
Read More 
How will tenants be affected by the incoming Renters’ Rights Act?
On 28th October 2025, the Renters’ Rights Bill was passed into law, and it is now the Renters’ Rights Act. Changes to legislation resulting from this new Act will take effect from May 2026. This will affect landlords and how they let out their property, and it is worthwhile being aware of how it affects…
Read More 
Gibraltar property values rise faster than UK
Gibraltar house prices rise faster than UK and London, despite market activity dropping 46% The latest market analysis by Enness Global has revealed that Gibraltar’s property market has seen stronger annual house price growth than both the UK and London, even as the number of transactions completing across the market has fallen sharply, creating a…
Read More 
Homes with fewer photos priced £80,000 lower
The latest research by London lettings and estate agent, Benham and Reeves, has revealed a stark disparity in asking prices depending on how extensively a property is marketed, with homes listed using four photos or fewer priced almost £80,000 lower on average than those benefiting from five or more images. Benham and Reeves analysed current…
Read More