Lenders’ fixed mortgage rates fell by smaller margins in May, according to Moneyfacts UK Mortgage Trends Treasury Report.
The overall average 2-year and 5-year fixed rates dropped by 0.06% and 0.01% to 5.12% and 5.09% respectively.
Rachel Springall, finance expert at Moneyfacts, said: “Lenders were busy repricing their mortgage ranges during May, but the margins of cuts to the overall two- and five-year fixed average rates were much smaller than seen a month prior.”
The average 2-year fixed rate was last lower in September 2022 at 4.24%, while the 5-year fixed rate was last lower in November 2024 at 5.09%.
The average 5-year fixed rate dropped by 0.41% since the start of June 2024, from 5.50% to 5.09%.
The average 2-year fixed rate is now 0.03% higher than the 5-year equivalent, the smallest gap since rates became inverted in October 2022.
The Moneyfacts Average Mortgage Rate fell to 5.12%, down from 5.17% month-on-month.
Product choice for residential mortgages dipped slightly month-on-month, with 150 fewer options available.
However, this is still higher than at the start of 2025.
Meanwhile, the average shelf-life of a mortgage product fell to 17 days, its lowest point in three months.
Springall added: “Lenders have been reviewing their stress testing over recent weeks, so some first-time buyers who have struggled with affordability criteria might be surprised to find they could now be eligible.”
