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
London land commands £105,213 per acre
The latest research from LandSale, the new property portal dedicated to land and rural property, has found that land in London commands an estimated average value of £105,213 per acre, almost eight times higher than the British average of £13,281 and higher than every other British region. This premium is being driven by a severe lack…
Read More 
77% of homebuyers seek homes requiring no work
The latest research from Yopa has found that 77% of homebuyers who have purchased within the last year were looking for a property requiring little or no work, highlighting the importance of presenting a market-ready home in current conditions where buyers are harder to come by than they were a year ago. Yopa commissioned a…
Read More 
Riskiest Places to Purchase Property in England
Cash House Buyer Sell House Fast has revealed the riskiest places to buy and sell property in England, based on factors such as crime rates, flood risk, air pollution levels, road collision rates, and coastal erosion risk. The 5 riskiest places for buying and selling property in England: 1 – North East Lincolnshire (Overall Risk…
Read More 
House prices steady in May despite broader market uncertainty
The latest Halifax House Price Index for May 2026 shows that: House prices fell by -0.1% between April 2026 and May 2026. This marks the second consecutive month of marginal monthly decline. Annual house price growth increased slightly to 0.5% in May 2026, up from 0.4% in April 2026. The average UK house price now…
Read More 
Halifax House Price Index – May 2026
House prices steady in May despite broader market uncertainty. House prices edged down -0.1% in May, following a similar -0.1% fall in April Average property price now £298,806, compared with £299,251 in April Annual growth up slightly to +0.5%, from +0.4% in April Northern Ireland continues to record the UK’s strongest annual growth at +7.8%…
Read More 
More mortgage borrowers turning to shorter-term fixes
Borrowers are increasingly turning to shorter-term fixed-rate mortgages in response to higher rates, new analysis of mortgage search activity on Moneyfactscompare.co.uk has found. The share of Moneyfactscompare.co.uk website users comparing two-year fixed-rate mortgages increased from 48.4% in February to 55.6% in May, while demand for five-year fixed deals fell from 27.7% to 21.8% over the…
Read More