The latest Moneyfacts UK Mortgage Trends Treasury Report data shows that the overall 2-year fixed mortgage rate is 0.32% higher than the 5-year equivalent, the largest difference in 15 years.
Both rates are at their lowest levels in six months, after four consecutive months of declines.
Product choice has increased slightly to 4,372 options, up from 4,341 in February 2023. Within individual loan-to-value (LTV) tiers, the 60% LTV tier’s availability reached its highest level on Moneyfacts records, rising by 51 to 657.
The average 2- and 5-year fixed rates fell month-on-month for the fourth consecutive month, down to 5.32% and 5.00% respectively.
The average Standard Variable Rate (SVR) continued to climb, reaching 7.12%, the highest rate since April 2008 and the first time it has breached 7% since October 2008.
Rachel Springall, finance expert at Moneyfacts, said: “The momentum in the residential mortgage market is positive, as fixed rates fell and product choice stabilised month-on-month. Lenders have continued to reduce fixed rates, with the average 5-year fixed rate resting below the equivalent 2-year.”
