Given all the market uncertainty, news that borrowers want two-year fixed mortgage deals has been released in New data from Moneyfactscompare.co.uk which 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 | |||||
| FTB: first-time buyer. STB: second time buyer or homemover. RMTGS: remortgage | |||||
Commenting on the move towards two year fixed, 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.”
