Mortgage lenders have cut fixed-rate pricing to its lowest level in more than two years as competition strengthens and product availability surges according to the latest data from Moneyfacts.
Average 2- and 5-year fixed mortgage rates fell again in November, both dropping to their lowest point since before the September 2022 mini-Budget.
The number of residential mortgage products on the market rose to 7,054 – close to a record high – while the average shelf-life of a deal fell to just 18 days as lenders rapidly repriced amid heightened activity.
The strongest growth in choice came at higher loan-to-value tiers, with a notable expansion in 90% and 95% LTV ranges over the past year.
DOWNWARDS TREND
Average fixed-rate pricing continues to move downwards. The typical 2-year fixed rate fell by 0.08 percentage points to 4.86%, while the 5-year equivalent dropped by 0.10 points to 4.91%, dipping below 5% for the first time since May 2023.
The Moneyfacts Average Mortgage Rate eased to 4.91%, down from 4.99% a month earlier and 5.44% a year ago.
Tracker and revert-to rates were broadly steady, with the average 2-year tracker unchanged at 4.66% and lenders’ standard variable rate holding at 7.27%.
COMPETITVE MARKET
Rachel Springall, finance expert at Moneyfacts, says the downward trend in pricing and broadening choice reflected an increasingly competitive market.
She adds that November “was particularly fruitful for fixed-rate cuts”, saying that the return of sub-5% five-year deals and rapid repricing had pushed the average shelf-life of a product to just 18 days.
Springall also points to a sharp rise in higher-LTV options over the past year.
MORE CHOICE
She says: “Any improvement in high loan-to-value deals should be celebrated as it gives borrowers more choice as competition ramps up.”
She adds that conditions moving into 2026 appear increasingly favourable for borrowers, with expectations of further base-rate cuts, muted house price growth and a strengthening mortgage market.
However, she warns that many households coming off older ultra-low fixed rates would face higher repayments and should seek advice early to “navigate the mortgage maze”.
