It comes as lenders continue to make cuts to home loans following a reduction in the interest rate last week.
This was the month of the mini-Budget in which the then-prime minister announced some of biggest tax cuts since 1972 which led to UK government borrowing costs to spike and the pound to dive.
Five-year fixed mortgages were previously lower in November 2024 at 5.09 per cent but now still sit at 5.1 per cent.
Barclays is the latest major lender to make cuts with a two-year fixed rate of just 3.85 per cent available as of tomorrow (13 May).
Two-year deals are also available from Lloyds at 3.75 per cent, although they require customers to be Club Lloyds members.
Rachel Springall, finance expert at Moneyfacts, said: “The momentum of rate cutting was rife throughout April, with lenders rushing to tweak their mortgage ranges.
Mortgage rates are coming down as the base rate is falling“Borrowers looking for a new deal may also be pleased to see the average two-year fixed rate has reached a notable milestone, falling to its lowest point recorded since the start of September 2022, before the notorious mini-Budget, or fiscal announcement.”
However, borrowers who are worried about rate volatility in the months ahead may still prefer a five-year fixed deal to secure their rate for longer, particularly as the overall average rate is at its lowest point for six months.
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Experts have said although rates may not increase in the near future, this could change depending on inflation and wage growth figures.
Nick Mendes of brokers John Charcol said: “Swap rates have edged up slightly following last week’s [Bank of England’s] Monetary Policy Committee meeting and the announcement of the trade deal [with the US].
“As ever, the [Bank of Englad] governor has stressed that decisions will remain data dependent. In my view, this suggests we are more likely to see three rate cuts this year rather than the four that had previously been priced in.
“Based on current mortgage rate pricing and lender margins these adjustments shouldn’t result in any lenders repricing upwards as a result.”
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