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For the first time since September 2022, the average two-year and five-year fixed mortgage rates are identical, both standing at 4.52%, according to Rightmove’s daily mortgage tracker.
This marks a significant shift in the market, with the two-year average now considerably lower than the 5.25% recorded at the same point last year. The narrowing gap reflects growing market confidence that interest rates will fall, with the Bank of England widely expected to cut the base rate next week.
With borrowing costs already easing, further reductions in mortgage rates are anticipated in the coming weeks as lenders continue to respond to declining swap rates and increased competition.
Matt Smith, Rightmove’s mortgage commentator, said: “Over the last week, average mortgage rates have remained pretty flat in the build up to next week’s interest rate decision. Expectations are currently set on a cut next week, and I expect lenders will use this moment as an opportunity to reduce mortgage rates a little further.
“Rate drops have been very slow and steady this year, but someone looking to take out a mortgage right now is likely to see a notable reduction in the rate they’d have been offered this time last year, particularly someone looking to fix for two years.
“With average two-year and average five-year fixed currently level, it would appear to only be a matter of time before the typical two-year rate is cheaper than the five-year equivalent.”
Average rates for 2-year and 5-year fixed-rate mortgages
| Term | Average rate | Weekly change | Yearly change |
| 2-year fixed | 4.52% | -0.01% | -0.74% |
| 5-year fixed | 4.52% | +0.00% | -0.35% |
Lowest rates for 2-year and 5-year fixed-rate mortgages
| Term | Lowest rate | Weekly change | Yearly change |
| 2-year fixed | 3.69% | +0.00% | -0.70% |
| 5-year fixed | 3.84% | +0.03% | -0.19% |
Average fixed-term mortgage rates for home-buyers with 5-10% deposits
| Loan to Value (LTV) | Term | Avg rate 23 Jul 2025 |
Avg rate 30 Jul 2025 |
Weekly Change | Yearly Change |
| 95% | 2-year-fixed | 5.19% | 5.19% | +0.00% | -0.77% |
| 95% | 5-year-fixed | 5.13% | 5.13% | +0.00% | -0.35% |
| 90% | 2-year-fixed | 4.75% | 4.73% | -0.02% | -0.85% |
| 90% | 5-year-fixed | 4.68% | 4.67% | -0.01% | -0.45% |
Average fixed-term mortgage rates for home-buyers with 15-25% deposits
| Loan to Value (LTV) | Term | Avg rate 23 Jul 2025 |
Avg rate 30 Jul 2025 |
Weekly Change | Yearly Change |
| 85% | 2-year-fixed | 4.43% | 4.41% | -0.02% | -0.86% |
| 85% | 5-year-fixed | 4.41% | 4.41% | +0.00% | -0.50% |
| 75% | 2-year-fixed | 4.32% | 4.31% | -0.01% | -0.77% |
| 75% | 5-year-fixed | 4.36% | 4.36% | +0.00% | -0.37% |
Average fixed-term mortgage rates for home-buyers with 40% deposits
| Loan to Value (LTV) | Term | Avg rate 23 Jul 2025 |
Avg rate 30 Jul 2025 |
Weekly Change | Yearly Change |
| 60% | 2-year-fixed | 3.83% | 3.90% | +0.07% | -0.69% |
| 60% | 5-year-fixed | 3.94% | 4.03% | +0.09% | -0.16% |
These rates are provided by Podium and are an average based on 95% of the mortgage market. All rates are based on products with a circa £999 fee.
Reflecting on the latest mortgage data, Nathan Emerson, CEO of Propertymark, said: “Affordability continues to be the number one issue for many aspiring and current homeowners. Therefore, seeing banks continue to improve their mortgage products will be much needed and welcome news for many.
“At a time when people are facing higher taxation connected with property transactions in many cases, ever more challenging deposits which are needed to enter the property market, and general cost of living increases, a wider variety of more affordable products is essential to help combat and further support consumers. It remains imperative that the cogs of the housing market continue to turn as it plays a crucial role in wider economic health.”
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