According to Moneyfacts, this takes average two-year fixed rates to their lowest point since the start of September 2022, at 5.18.
Five-year fixed rates fell by 0.08 percentage points to 5.10%.
Year-on-year trend
A year ago, at the start of May 2024, the average five-year fixed rate was 5.48%, 0.38 percentage points higher than the current 5.10%.
Two-year fixed rates have fallen further, by 0.73 percentage points over the same period, down from 5.91% to 5.18%.
The average two-year tracker variable mortgage rate fell to 5.16% while the average Standard Variable Rate (SVR) fell to 7.58%.
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Rachel Springall, finance expert at Moneyfacts, said: “The momentum of rate cutting was rife throughout April, with lenders rushing to tweak their mortgage ranges, leading to a drop in the average shelf-life of a mortgage to 19 days, down from 21 a month prior.
“Such vigorous activity led to notable cuts to the overall average two- and five-year fixed mortgage rates, seeing the biggest monthly fall to the two-year fixed rate in over six months. 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.”
Rise in product numbers
The availability of product choice grew further, up to 6,993 options, which is up year-on-year compared to 6,565 in May 2024 and the highest number since October 2007.
Springall added: “Product choice continues to thrive, and this can create a positive outlook among borrowers. There will be millions of consumers coming off low fixed rate mortgages over the next year and they need both the support and appetite for new business from lenders to secure new deals.
“First-time buyers remain an integral part of the mortgage market, so any relief on stress testing or innovative products can make a huge difference to those struggling to find an affordable home. Borrowers excited by the arrival of cheaper mortgage rates would be wise to seek advice to assess the overall cost of any deal to ensure it’s the right choice for them.”
