The cost of the average 2-year fixed rate mortgage has fallen by its biggest margin in six months, the Moneyfacts UK Mortgage Trends Treasury Report has revealed.
Average mortgage rates on overall 2- and 5-year fixed rates fell by 0.14% and 0.08% to 5.18% and 5.10% respectively.
The typical 2 and 5-year fixed rates were last lower in September 2022 (4.24%) and November 2024 (5.09%) respectively.
Rachel Springall, finance expert at Moneyfacts, said: “The momentum of rate cutting was rife throughout April, with lenders rushing to tweak their mortgage ranges, leading to a drop in the average shelf-life of a mortgage to 19 days, down from 21 a month prior.
“Such vigorous activity led to notable cuts to the overall average two- and five-year fixed mortgage rates, seeing the biggest monthly fall to the two-year fixed rate in over six months.
“Borrowers looking for a new deal may also be pleased to see the average two-year fixed rate has reached a notable milestone, falling to its lowest point recorded since the start of September 2022, before the notorious ‘mini-Budget’, or fiscal announcement.”
Product choice rose month-on-month, to 6,993 options, which is up year-on-year from 6,565 in May 2024.
Springall added: “Product choice continues to thrive, and this can create a positive outlook among borrowers. There will be millions of consumers coming off low fixed rate mortgages over the next year and they need both the support and appetite for new business from lenders to secure new deals.
“First-time buyers remain an integral part of the mortgage market, so any relief on stress testing or innovative products can make a huge difference to those struggling to find an affordable home.
“Borrowers excited by the arrival of cheaper mortgage rates would be wise to seek advice to assess the overall cost of any deal to ensure it’s the right choice for them.”