The average price for a two-year fix moved to 3.03% this month, shows Moneyfacts data.

This is the highest rate for this product type Moneyfacts has recorded since March 2015, when the average two-year fix came to 3.06%, and it means that the price has increased by 0.69% this year.

Meanwhile, the average rate for a five-year fix grew for the seventh month in a row, taking it to 3.17%, the highest seen since May 2016 and 0.53% more than in December 2021.

Overall, product numbers have gone up over the month, Moneyfacts adds, from 4,925 in April to 5,087.

And it points out too that there are two more 95% LTV mortgages on the market this month, at 369, which is the most choice offered since March 2020, when there were 391.

Moneyfacts finance expert Eleanor Williams says: “With a margin of just 0.14% now separating [the two- and five-year fix] averages, the differential between the two is the smallest recorded since February 2013 (0.08%).

“This could indicate that providers may be adapting their pricing towards borrower preference potentially shifting towards longer term fixed rate options in order to protect themselves from further pricing volatility.”

She adds: “The average two- and five-year fixed rates at both 95% and 90% LTV may have risen month-on-month, [but] these are the only two lending tiers where the average rates remain lower now than they were at this time last year.

“While there may be some who are forced to delay their homeownership dreams due to wider economic pressures, recent movements in this sector seem to indicate that lenders could be keen to continue to cater to this demographic where possible.”