Half (53%) of borrowers comparing fixed rate mortgage deals in November 2025 were considering two-year fixed-rate options, Moneyfacts data shows.
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.
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.”
Two-year fixed rates average at 4.86%, three-year at 3.76%, five-year at 4.91%, and 10-year 5.61%.