New data from Twenty7tec shows borrowers are moving decisively away from long term fixed mortgages, with demand for ten year deals dropping to its lowest level in years.
At the start of 2025, just under a quarter of searches (23.14%) were for six to ten year fixes. By August that figure had nearly halved to 12.41%. In contrast, searches for two year and under products rose from 41.13% in January to 52.94% in August. Three to five year fixes have been the steadiest part of the market, accounting for around a third of searches across the year.
The shift comes as interest rates continue to drift downwards and a large group of borrowers who locked into five year deals during the pandemic now face remortgaging. For many, flexibility has become more attractive than locking in for a decade.
Nakita Moss, Head of Product at Twenty7tec, said: “We are seeing a planned pivot back to shorter fixes. With rates easing and a huge wave of borrowers coming to the end of their five year Covid-era deals, many are choosing to keep their options open. Long fixes will always appeal to those who prioritise stability, but the majority now see more value in shorter terms and the ability to review again in two or three years.
When borrowers looked at five-year fixed rates in the past, they often seemed more attractive than shorter fixes. That wasn’t just about interest rates themselves, but about the certainty they offered in a volatile market. Pricing was strongly influenced by SWAP rates, which underpin how lenders set fixed mortgage deals. More recently, two-year pricing has improved, again reflecting movements in SWAPs, so advisers are seeing a shift in demand back towards shorter fixes.”
The long view
The latest figures are a far cry from 2022, when long fixes briefly dominated. That June, searches for six to ten year products peaked at 36.71% as the Bank of England raised the base rate from 0.1% in late 2021 to 3% by the end of 2022.
The market shock that followed the September 2022 mini budget, which pushed gilt yields and mortgage rates sharply higher overnight, drove borrowers to prioritise certainty even if it meant paying more in the short term. Many short term products disappeared, and locking in for a decade became a defensive move.
As the economic environment steadied in 2023 and 2024, demand for long fixes slipped back. Around 22.4% of searches in 2023 were for six to ten year products, falling again to 20.8% in 2024. For 2025 to date, the figure averages 19.8%, but the summer months have seen a sharp acceleration of the trend, with August’s 12.41% the lowest monthly share since before the pandemic.
Monthly momentum in 2025
The first few months of the year saw only gradual movement: long fixes dipped from 23.14% in January to just over 21% by April. But from May onwards, the trend became more pronounced. By July, searches for ten year fixes had collapsed to 13.14%, and August took that decline further. The swing has been almost exactly mirrored by the rise in two year deals, which climbed more than 11 percentage points across the same period.
Product, pricing, psychology
These shifts underline how sensitive borrower behaviour is to both macro-economic conditions and personal financial timing. Borrowers who reached for long term stability in the volatile climate of 2022 are now, in calmer waters, choosing products that give them the option to refinance sooner. For lenders, the data reflects a market that is once again competitive on shorter terms and shows how product design and pricing interact with borrower psychology.
Nathan Reilly, Commercial Director at Twenty7tec added: “Advisers are in a crucial position right now. With so many clients coming off five year fixes, the conversation isn’t just about finding the lowest rate, it’s about balancing certainty with flexibility. Helping borrowers weigh up whether to lock in or stay short term is where advisers add real value. The data shows people are leaning towards shorter terms, but it’s advisers who can guide them through the trade-offs and make sure the choice fits their long-term financial plans.”
