At the 95% LTV tier, the number of available products rose to 442—its highest point in 17 years, since 575 were available in March 2008. Similarly, product availability at the 90% LTV level increased to 845, also marking a 17-year high, compared to 957 in the same month of 2008.
Overall product choice continues to improve, climbing to 6,870 options in total. This represents an increase from 6,307 a year ago (April 2024) and is the highest figure recorded since October 2007, when 7,421 products were available.
Although the pace of rate reductions has slowed, the average two- and five-year fixed mortgage rates continued to fall month-on-month, decreasing by 0.07% and 0.04%, respectively. The current average two-year fixed rate stands at 5.32%, while the five-year fixed rate is now 5.18%. These latest reductions are smaller than those seen between February and March 2025, when the cuts of 0.13% and 0.10% marked the largest monthly drops since October 2024.
Looking back to the start of April 2024, the average five-year fixed rate has dropped by 0.21%, falling from 5.39% to its current level. The two-year fixed rate has seen an even more significant decline of 0.48%, down from 5.80%.
Despite the two-year fixed rate remaining higher than the five-year, the current gap of 0.14% is the narrowest since rate inversion began in October 2022.
In other developments, the average shelf-life of a mortgage product has risen to 21 days, up from 16 days a month ago, indicating slightly more stability in the market.
Meanwhile, the average two-year tracker variable mortgage rate edged up to 5.20%, while the average Standard Variable Rate (SVR)—the ‘revert to’ rate—dropped to 7.60%, down from the peak of 8.19% recorded in November and December 2023.
Rachel Springall, finance expert at Moneyfacts, said:
“The flourishing choice of low deposit mortgages will no doubt be welcomed by borrowers who are either looking to remortgage or are a first-time buyer. The Government has been clear that it wants lenders to do more to boost UK growth, and so a rise in product availability for aspiring homeowners is a healthy step in the right direction. However, there is still much more room for improvement, particularly as the choice of deals at 95% loan-to-value represents just 6% of all deals available to borrowers across fixed and variable mortgages. The end of Stamp Duty Land Tax (SDLT) relief last month could also be playing its part to incentivise lenders to push out more deals to entice new business. Mortgage affordability for borrowers with small deposits has also improved month-on-month, as there has been a drop in rates. The average two-year fixed mortgage rate for borrowers with a 5% deposit at 5.81% is its lowest point in over two years (5.54% - October 2022).
“Throughout March there was minimal movement to swap rates, which spelled a stable situation on the average shelf-life of a mortgage, rising to 21 days from 16 a month prior. This stability was further enhanced by a hold to the Bank of England base rate during March, with another announcement now not due until May. There are numerous murmurings of a potential cut to surface in the coming months, but this could be delayed if inflation gets out of control. However, borrowers dissatisfied by a lack of cuts would be wise to keep in mind that lenders can reduce rates regardless of base rate moves. If the swap rate market plummets, this usually gives lenders a reason to slash their ranges in response.
“Fixed mortgage rates are down year-on-year, and slowly the market is seeing the average two-year fixed getting closer to its five-year counterparts, now with a rate gap of just 0.14%. Since October 2022, the average two-year fixed rate has been higher than the five-year rate. It seems an end to such inversion could be coming, but this does largely depend on how swap rates will move in the coming weeks. These moves make it essential for borrowers not to delay finding a new deal, particularly if they are sitting on a revert rate. However, with the lowest rate mortgages grabbing the headlines, it’s vital borrowers seek advice to find the most appropriate package for them, and not just be swayed by the initial rate.”
