An average two-year fix is 5.00%, while the five-year rate is 5.01%. 

The last time the two-year rate was lower than the five-year fix was September 2022, the month that Prime Minister Liz Truss set out her mini-Budget. At that time, the average two-year fix was 4.24%, while a five-year term was 4.33%. 

Moneyfacts finance expert Rachel Springall says: “Millions of borrowers coming off a fixed rate deal this year will be delighted to see fixed mortgage rates on the downward trend, with the average two-year fixed rate dipping below its five-year counterpart for the first time since September 2022.  

“Back then, mortgage rates started to rise dramatically, in the aftermath of the mini-Budget, and it caused mass panic for those struggling to buy their first home.  

“Thankfully, time is a healer, with lower rates, much more market stability and a relaxation in stress testing, mortgage prisoners might now be free to refinance. 

Springall adds: “The end of the inversion in the two- and five-year fixed rates, if sustained moving onward, will bring borrowers back to a more traditional mortgage market, where it’s more expensive to secure a longer-term fixed mortgage.  

“Lenders will no doubt be keeping a close eye on swap rates and react quickly should the path change in the coming weeks.  

“This may well be the time for borrowers to act quickly to secure a deal, so it’s wise for them to seek advice to navigate the mortgage maze.”