Half of borrowers want two-year fixed mortgage deals
New data from Moneyfactscompare.co.uk shows that:
- Nearly half (49%) of borrowers comparing mortgage deals in November 2025 were considering two-year fixed-rate options.
- This shorter-term deal was favoured by first-time buyers (70%) and remortgage customers (62%), while second-time buyers showed more variation, with 45% leaning towards five-year or longer terms.
- Despite higher overall mortgage rates, 7% of borrowers were also exploring 10-year fixed deals.
| Fixed rate mortgage demand by term and borrower type | |||||
| Mortgage Rate Period | Moneyfacts Average Mortgage Rate (All LTVs) | FTB | STB | RMTGS | ALL |
| 2 Year | 4.86% | 70% | 41% | 62% | 53% |
| 3 Year | 4.76% | 5% | 11% | 7% | 9% |
| 5 Year | 4.91% | 21% | 33% | 25% | 28% |
| 10 Year | 5.61% | 2% | 12% | 3% | 7% |
| Other | n/a | 2% | 3% | 3% | 3% |
| Consumers comparing fixed term mortgage deals on moneyfactscompare.co.uk, 1-30 November 2025, by borrower type and term. Average mortgage rates correct as at 03 December 2025.
Source: Moneyfacts Analyser |
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| FTB: first-time buyer. STB: second time buyer or homemover. RMTGS: remortgage | |||||
Adam French, Head of News at Moneyfactscompare.co.uk, said:
“It’s not surprising that so many borrowers are considering two-year deals, given expectations for rates to continue falling in the short to medium term. At the beginning of the year, the average two-year fixed mortgage rate was 5.48%, higher than the typical five-year deal, which was priced at 5.25%. However, two-year deals have since become cheaper, with average rates now at 4.86% and the average five-year deal sat at 4.91%, both dipping below 5% earlier this year for the first time since the mini budget in September 2022.
“Despite this, second-time buyers appear to be prioritising stability, predictability, and protection from potential rate volatility over cheaper rates. They seem to be more concerned with securing long-term peace of mind, especially if they have higher levels of borrowing and want to shield themselves from unexpected rate hikes.”
Mary-Lou Press, President of NAEA Propertymark (National Association of Estate Agents), comments:
“Today’s figures indicate that consumer confidence is still being shaped by uncertainty around the direction of interest rates. The strong shift towards two-year fixed products reflects a desire among many borrowers, particularly first-time buyers and those remortgaging, to keep their options open should rates continue to ease next year.
“While short-term fixes are attractive in the current climate, it’s notable that a significant share of second-time buyers are opting for longer-term stability. This aligns with what our member agents are hearing on the ground: homeowners with larger loans or growing families are prioritising predictability in their monthly payments, even if that means accepting a slightly higher rate.
“Ultimately, borrowers are trying to strike the right balance between flexibility and security. With pricing between two and five-year deals now closer than earlier in the year, professional advice is more important than ever.”
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