Fixed rates to see biggest monthly cuts from October 2024: Moneyfacts – Mortgage Strategy
Fixed-rate mortgages fell for a month in a row, marking the biggest monthly reduction since October 2024, Moneyfacts data revealed.
The latest figures show that the two-year and five-year average fixed rates fell by 0.16% and 0.11% respectively, and both reached 5.52%, their lowest points since early March 2026.
The downward trend cuts prices away from the transition, with the two-year average priced higher than the five-year average for three consecutive months from April to June.
Moneyfacts’ average mortgage rate fell by 0.12%, to 5.47%, its biggest monthly drop since March 2025 when it also fell by 0.12%.
It last fell below 5% earlier this year in March when it stood at 4.90%.
Meanwhile, the five-year fixed rate at 95% loan-to-value (LTV) fell below 6% for the first time since March this year.
The data also shows that mortgage availability increased for the third month in a row, with product selection increasing by 45 deals to 7,177 options.
Although Moneyfacts says the market has continued to recover from a severe pullback caused by volatile markets due to the Middle East conflict, there are still 307 fewer deals compared to the start of March 2026.
The average shelf life of the deal now stands at 14 days, one day less than last month.
Moneyfacts suggests that the incentive to borrow money remains strong, with fixed rates much lower than the average ‘return’ rate or standard variable rate.
Average SVR remained at 7.13%, down 0.29% year-on-year from 7.42%.
Moneyfacts financier Rachel Springall says: “Borrowers will be relieved to see fixed-rate debt slow at its fastest pace for almost two years, combined with a period of calm in product volatility and electoral development.”
“Lenders responded well to the June rate cut, seeing significant declines in two-year and five-year fixed rates by 0.16% and 0.11% respectively, both to 5.52%.
“It’s been three months since the fixed rates were changed, when the two-year fixed rate was higher than the five-year rate. However, this has started to reverse, so rates should start to return to normal rates.”
“However, this favorable situation could be reversed, as a resurgence of tensions in the country could reduce the rate of downgrades.”
“Mortgage product recovery from the downturn seen in April may have slowed, with an increase of 45 options since the beginning of June, but it is the combined total of 976 deals that have returned since the beginning of May that needs to be celebrated. This equates to almost a third (76%) of mortgage deals coming back from the 1,283 withdrawn products.”
“Stability appeared to be a recurring theme in June, with the average shelf life of a deal recorded at 14 days, up from 15 days last month. This is a very welcome period compared to the record low of eight days recorded in early April.”
“Borrowers with a small deposit or equity of 10% will be happy to know that some acquisitions of product selection with 90% LTV have exceeded 900 options for the first time since the beginning of March 2026. However, there is still room for improvement in the high LTV goals, especially for borrowers who can only accumulate a deposit of 5%, 8% of the deposit of 8% (8%) of the market.”
