Second-time buyers dominate demand for longer term fixed mortgage deals
Second-time buyers are dominating demand for longer term fixed mortgage deals, fresh data from Moneyfacts Analyser can reveal.
Of those looking for fixed term deals on moneyfactscompare.co.uk:
Almost two-thirds (58%) of second-time buyers who compared mortgage deals using the moneyfactscompare.co.uk website were considering terms of three years or longer in the 30 days to 1 October 2025.
In comparison, only around one in three homeowners seeking to remortgage (34%) and first-time buyers (31%) were comparing fixed deals longer than two years.
Overall, however, shorter term fixes are the most popular, with more than half (55%) of those comparing fixed term deals on moneyfactscompare.co.uk comparing fixed rate terms of two years or less.
| Consumer demand for fixed rate mortgages by borrower type and term | ||||
| Mortgage Term | First-time buyers | Second-time buyers | Remortgage | Total |
| Two-year fixed rate or less | 69% | 42% | 66% | 55% |
| Three-year fixed rate or more | 31% | 58% | 34% | 45% |
| Consumers comparing fixed term mortgage deals on moneyfactscompare.co.uk, 1 to 30 September 2025, by borrower type and term.
Source: Moneyfacts Analyser |
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Adam French, Head of News at Moneyfactscompare.co.uk, said:
“Many second-time buyers may be making peace of mind a priority by seeking longer term mortgage deals despite the general expectation for rates to keep slowly falling in the short-to-medium term. Instead, they are prizing stability, predictability and protection from volatility – particularly if they have borrowed more and increased their exposure to unforeseen rate rises.
“The Moneyfacts average two- and five-year mortgage rates are currently at 4.98% and 5.02%, respectively. However, given that inflation is currently predicted to sit above the Bank of England’s 2% target until at least 2027 and that the cost of Government borrowing has been climbing, there are still plenty of economic challenges on the horizon which may influence mortgage rates and borrower behaviour in the future.” criteria they select.
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