First-time buyers favour shorter terms, while many home movers still seek longer-term certainty
A large share of borrowers are favouring shorter fixed rate mortgage terms, new figures from Moneyfacts suggest, even as some segments of the market continue to look for longer-term security.
According to the price-comparison site, 49% of customers reviewing products on its platform in November 2025 were considering two-year fixed rate mortgages. First-time buyers showed the strongest preference for this term, with 70% of them focusing on two-year fixes, while 62% of remortgage customers did the same.
By contrast, second-time buyers displayed a more mixed pattern. Within this group, 45% were inclined towards fixes of five years or longer, indicating that many home movers remain attracted to longer-term protection from possible interest rate volatility.
Moneyfacts also reported that 7% of all borrowers looking at products on its site were exploring 10-year fixed rate options, despite the higher headline pricing typically associated with such deals.
“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,” said Adam French, head of news at Moneyfactscompare.co.uk.
“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.”
Trade body NAEA Propertymark said the pattern in Moneyfacts’ data reflects the tension many households face between flexibility and longer-term protection, particularly at a time when the future path of Bank rate remains uncertain.
“Today’s figures indicate that consumer confidence is still being shaped by uncertainty around the direction of interest rates,” said Mary-Lou Press, president of NAEA Propertymark. “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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