According to Moneyfacts figures, overall average two- and five-year fixed rates decreased by 0.06 and 0.01 percentage points to 5.12% and 5.09% respectively. This compares to decreases of 0.14 and 0.08 percentage points respectively last month.
The report noted that the average two- and five-year fixed rates were last lower in September 2022 at 4.24% and November 2025 at 5.09% respectively.
Moneyfacts said that in June 2024, the average five-year fixed rate was estimated at 5.5%, which is 0.41 percentage points higher than the current average.
The average two-year fixed rate has decreased by around 0.81 percentage points over the past year, the report said.
Looking at the margin between the two- and five-year fixed rates, the average two-year fixed rate is 0.03 percentage points higher than its five-year equivalent, which is the lowest the gap has been since rates became inverted in October 2022.
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Product choice decreased month-on-month to 6,843 options, but this is up year-on-year to 6,629 products.
The average shelf life of a mortgage product fell to 17 days from 19 days a month ago and is at its lowest since March 2025, when the shelf life came to 16 days.
The average two-year tracker deal came to 4.91% in June, which is the first month since March 2023 that the average has decreased to below 5%.
The average standard variable rate (SVR) decreased to 7.48%, which is the highest recorded since 8.19% was recorded in November and December 2023.
Swap rate movements can lead to ‘opposing rate moves’
Rachel Springall, finance expert at Moneyfacts, said lenders were “busy repricing” their mortgage ranges during May, but the margins of cuts to the overall two- and five-year fixed average rates were much smaller than seen a month prior.
She continued: “While the Bank of England base rate cut last month could be celebrated by borrowers, lenders can move rates in the opposite direction if swap rates rise. This can also cause opposing rate moves on longer-term fixed versus short-term, depending on the divergence of swap rates.
“A deeper dive into the loan-to-value (LTV) tiers shows the average five-year fixed rate at 60% LTV rose by 0.07 percentage points, whereas the same LTV tier on a two-year fixed fell by 0.07 percentage points. Overall, the average two-year fixed rate fell by 0.06 but the average five-year by just 0.01 percentage points month-on-month.
“This means the rate gap between the average two- and five-year fixed rates is the smallest it’s been since the inversion in rates started in October 2022, when the five-year was last higher than its two-year counterpart.”
Springall added that product choice for residential mortgage fell month-on-month, which may be “counterintuitive” from the rises seen over the last few months, but the drop was “relatively modest”.
“Choice overall is still higher than at the start of 2025, and deals at the higher loan-to-value tiers are plentiful, despite also experiencing a small monthly dip. This churn of mortgage deals can occur if lenders pull and replace deals to cope with interest rate moves and borrower demand.
“The flow of changes led to a drop in the average shelf life of a deal to 17 days, now at its lowest point in three months. This may further prompt the millions of borrowers due to refinance this year to seek advice and secure a new deal,” she noted.
Springall stated that first-time buyers “may feel it’s not quite the right time to get a mortgage if they are struggling with the cost of living, but it’s always worth getting independent advice to assess the variety of options available”.
“Lenders have been reviewing their stress testing over recent weeks, so some first-time buyers who have struggled with affordability criteria might be surprised to find they could now be eligible,” she said.
