The last time both terms converged was in September 2022, before the Liz Truss mini-Budget. 

The current July two-year average rate of 4.52% is down by one basis point from the previous week and is 74bps lower than a year ago. 

The five-year 4.52% rate average is unchanged from the previous week and is 35bps lower than a year ago. 

The property website says that, based on the average asking price of a home, this equates to a monthly mortgage payment of £1,518, compared to £1,650 last year – a saving of £132 per month. 

This calculation is based on a 30-year mortgage and a 20% deposit. 

The average UK house price was £269,000 in May, £10,000 higher than a year ago, according to the latest Land Registry data. 

Rightmove points out that the cheapest mortgage rate on the market is a two-year fixed, at 60% loan to value at 3.69%, the cheapest two-year rate since April. 

Rightmove mortgage expert Matt Smith says: “Over the last week, average mortgage rates have remained pretty flat in the build-up to next week’s interest rate decision. 

“Expectations are currently set on a cut next week, and I expect lenders will use this moment as an opportunity to reduce mortgage rates a little further.  

“Rate drops have been very slow and steady this year, but someone looking to take out a mortgage right now is likely to see a notable reduction in the rate they’d have been offered this time last year, particularly someone looking to fix for two years.  

“With the average two-year and average five-year fix currently level, it would appear to only be a matter of time before the typical two-year rate is cheaper than the five-year equivalent.”