Average mortgage rates on two and five-year fixed products have fallen this month by 0.03% and 0.01% to 5.09% and 5.08%, respectively.

According to data published by Moneyfacts, the average two and five-year fixed rates were last lower in September 2022 (4.24%) for a two-year fixed product, and October 2024 (5.07%) for a five-year fix.

Moneyfacts also revealed that at the start of July last year, the corresponding figures were 5.53% for a five-year fixed product, a fall of 0.45%, and 5.95% for a two-year fix, which is a 0.86% fall over the same period.

In terms of the number of products on the market, product choice has climbed to 6,908 options this month, up significantly on last year when there were 6,658 in July. Outside of May 2025 (6,993), this figure was last higher in October 2007 (7,421).

“Fixed mortgage rates have continued on their downward trend, which will delight the millions of borrowers due to refinance this year,” commented finance expert at Moneyfacts, Rachel Springall.

“Lenders have also been relaxing their stress test rules, which will further boost affordability. The repricing momentum from lenders was rife in June, leading to another fall in the average shelf-life of a deal to 16 days.

“However, the intensity of fixed rate cuts calmed, seeing the average two- and five-year fixed rates drop by 0.03% and 0.01%, respectively. A deeper dive into the loan-to-value (LTV) sectors also revealed the average five-year fixed rate at 60% LTV rose, and with the five-year fixed rate dropping by just 0.01%, it may raise concerns over the diverging path of longer-term fixed rates.”

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