Nearly half of mortgage searches focused on shorter deals as borrowers expect further rate cuts
Borrowers are increasingly opting for short-term fixed rate mortgage products, according to new figures from mortgage tech provider Twenty7tec.
Data from May 2025 shows that nearly 48% of European Standardised Information Sheet (ESIS) documents generated through the platform were for products fixed for two years or less. Out of 1.92 million ESIS documents, 912,378 were for short-term fixes — up from 40.5% in October 2024 and just 22% in September 2022.
This trend marks a shift in borrower behaviour, with many choosing flexibility amid expectations that interest rates will decline in the months ahead. The Bank of England cut the base rate to 4.25% in May, its first rate reduction of the year, prompting speculation about further decreases. The central bank, however, decided to keep the rate steady on Thursday.
Borrowers had previously leaned towards longer-term deals during the rapid rate hikes of late 2022. At that time, most ESIS activity focused on three- to 10-year fixed terms. As the base rate rose to 3.5% by December 2022, demand for shorter fixes increased to 39.2%. By May 2023, two-year fixes accounted for 42.8% of searches, signalling a growing appetite for short-term products.
“These shifts in product choice reflect changing borrower needs,” said Nathan Reilly (pictured), director at Twenty7tec. “In late 2022, many were looking for longer-term certainty as rates climbed. But by mid-2023, the mood had shifted – more borrowers were backing short-term fixes in the hope that rates would start to fall.
“But what does this mean for advisers? With more customers choosing shorter-term deals, brokers need to be prepared for more frequent refinancing conversations. Now’s the time to ask whether your CRM system is ready – is it helping you stay in regular contact, track the client journey effectively, and keep your pipeline visible?”
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