According to the latest data in the Moneyfacts UK Mortgage Trends Treasury Report, the disparity between the overall 2-year fixed mortgage rate and the 5-year equivalent is greater than it has been in 15 years, with a 0.32% difference between the two. Interestingly, both rates have reached their lowest levels in half a year, following four consecutive months of drops.

There has been a slight increase in product choice, with options rising from 4,341 in February 2023 to 4,372. In addition, the availability of the 60% LTV tier has achieved its peak level on Moneyfacts records, ascending by a substantial 51 to reach 657.

Borrowers will be pleased to know that the average fixed rates for both the 2-year and 5-year terms have fallen month-on-month for the fourth month in a row. They currently stand at 5.32% and 5.00%, respectively.

Conversely, the average Standard Variable Rate (SVR) has continued its climb, reaching the highest rate since April 2008 at a staggering 7.12%. This is the first time the SVR has crossed the 7% threshold since October 2008.

Rachel Springall, a finance expert at Moneyfacts, commented on the situation, saying, “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.”