The typical two-year fixed rate declined by 0.08 percentage points over the month to 4.86%, while the average five-year fixed rate dropped by 0.10 percentage points to 4.91%, according to Moneyfacts

Average two- and five-year fixed mortgage rates have dropped to their lowest levels since early September 2022, before the government’s mini-Budget, according to the new figures from Moneyfacts.

The price comparison site’s latest UK Mortgage Trends Treasury Report shows that the typical two-year fixed rate declined by 0.08 percentage points over the month to 4.86%, while the average five-year fixed rate dropped by 0.10 percentage points to 4.91%. The five-year fix has now moved below 5% for the first time since May 2023.

Across all residential products, the Moneyfacts Average Mortgage Rate dropped to 4.91% in the month, from 4.99%. This is 0.53 percentage points lower than the 5.44% average recorded in December 2024.

Product choice has also broadened. The number of residential mortgage products increased to 7,054, close to a record high, with the average shelf-life of a mortgage deal shortening to 18 days, reflecting stronger pricing activity and repricing by lenders.

The expansion has been most pronounced at higher loan-to-value (LTV) bands. Over the past 12 months, the number of products at 95% LTV has risen by 111, and by 155 at 90% LTV. No other LTV tier has seen growth of more than 100 products year-on-year. Moneyfacts said the 90% and 95% LTV ranges are now at their highest levels since March 2008.

Tracker and revert-to rates have been more stable. The average two-year tracker variable rate was unchanged month-on-month at 4.66%, though this is 0.80 percentage points lower than the 5.46% average seen a year earlier. The average standard variable rate (SVR) – the “revert to” rate – held at 7.27% on the month, down from 7.85% a year ago and below the recent high of 8.19% hit in November and December 2023.

Mortgage rates continue on the downward trend and November was particularly fruitful for fixed rate cuts, said Rachel Springall, finance expert at Moneyfacts. The repricing by lenders led to the average five-year fixed rate dropping below 5% for the first time in over two years and sits at its lowest point since before the ‘mini-Budget’ in September 2022, alongside its two-year counterpart.

She added: The government has been very vocal that it wants lenders to do more to support buyers to boost UK growth, so any improvement in high loan-to-value deals should be celebrated as it gives borrowers more choice as competition ramps up.