Sub-4% two-year fixed mortgages return for high-deposit borrowers
Falling swap rates have pushed the cheapest two-year fixes for 60% LTV remortgages back below 4% for the first time since 2022.
By Money Guide editorial team
Published:
Several mainstream lenders have launched two-year fixed rates priced below 4% this week for borrowers with at least 40% equity. Five-year fixes at 60% LTV are now starting from around 3.85%.
The moves follow a sustained fall in swap rates — the rates at which banks lend to each other in the wholesale market — over the past two months, as markets price in further Bank Rate cuts later in 2026.
Borrowers approaching the end of a fix taken out at the 2022–23 peak (with rates of 5.5–6.5%) can expect a meaningful reduction in monthly payments, but the picture is still far worse than the sub-2% rates many were paying before 2022. For most, the practical question is whether to fix for two years and hope for further falls, or lock in five years of certainty.
Anyone within six months of a remortgage can secure a rate now and switch if cheaper deals appear before completion. There is no fee for cancelling an unactivated offer with most lenders.