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% |
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