Five-Year Fixed Rates Fall

The gap between the average two-year and five-year fixed rate mortgage has narrowed to a seven-year low. According to the latest analysis by Moneyfacts.co.uk, the average two-year fixed rate has fallen by 0.03% since January to 2.49%, while the average five-year fixed rate has decreased by 0.09% to 2.85%. As a result, the difference between the two rates has narrowed by 0.06% since the start of the year, from 0.42% to 0.36%, the smallest margin recorded in seven years.