This is according to the latest Moneyfacts UK Mortgage Trends Treasury Report which reveals that the average two- and five-year fixed rates were last lower in September 2022 (4.24%) and November 2024 (5.09%) respectively.

On a monthly basis, average mortgage rates on the overall two- and five-year fixed rates fell by 0.14% and 0.08% to 5.18% and 5.10% respectively. The two-year fixed rate noted its biggest monthly fall since the start of October 2024 (0.16%).

At the beginning of May last year, the average five-year fixed rate was 5.48%; compared to the start of this month, the rate is 0.38% lower at 5.10%. However, the average two-year fixed rate has fallen by 0.73% over the same period, down from 5.91% to 5.18%.

The Moneyfacts report also showed that the availability of product choice grew further, and the average shelf-life of a deal fell. The average shelf-life of a mortgage product fell to 19 days, from 21 days a month ago.

Product choice overall rose month-on-month, to 6,993 options, which is up year-on-year (6,565 – May 2024) and the highest number since October 2007 (7,421).

The average two-year tracker variable mortgage rate fell to 5.16%.

The average ‘revert to’ rate or Standard Variable Rate (SVR) fell to 7.58%. In comparison, the highest recorded was 8.19% during November and December 2023.

Commenting on the latest data Moneyfacts finance expert Rachel Springall 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.

“Falling swap rates have been the driving force behind fixed rate mortgage cuts, and the movement has also fuelled a shortening gap between short- and longer-term fixed rate pricing. The inversion in rates could soon come to an end, with the rate gap between the average two- and five-year fixed mortgages now just 0.08%.

She added: “Since the start of October 2022, the average two-year fixed rate has been higher than the five-year rate. However, borrowers who are worried about rate volatility in the months to come may still prefer a five-year fixed rate deal to secure their rate for longer, particularly as the overall average rate is at its lowest point for six months.”

Springall insisted there was more positive news for borrowers with smaller deposits, with the average two-year fixed mortgage at 90% loan-to-value dropping to its lowest point since October 2022 (5.33%) and product choice overall at 90% and 95% loan-to-value remains at a 17-year high (March 2008).

She concluded: “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.”