Almost two-thirds (58%) of second-time consumers who in contrast mortgage offers have been contemplating phrases of three years or longer within the 30 days to 1 October 2025, moneyfactscompare.co.uk web site knowledge reveals.
The knowledge reveals that as compared, solely round one in three householders looking for to remortgage (34%) and first-time consumers (31%) have been evaluating mounted offers longer than two years.
Overall, nonetheless, shorter time period fixes are the most well-liked, with greater than half (55%) of these evaluating mounted time period offers on moneyfactscompare.co.uk evaluating mounted charge phrases of two years or much less.
Moneyfactscompare.co.uk head of stories Adam French says: “Many second-time consumers could also be making peace of thoughts a precedence by looking for long run mortgage offers regardless of the overall expectation for charges to maintain slowly falling within the short-to-medium time period.”
“Instead, they’re prizing stability, predictability and safety from volatility – significantly if they’ve borrowed extra and elevated their publicity to unexpected charge rises.
“The Moneyfacts common two- and five-year mortgage charges are presently at 4.98% and 5.02%, respectively.”
“However, on condition that inflation is presently predicted to sit down above the Bank of England’s 2% goal till at the very least 2027 and that the price of Government borrowing has been climbing, there are nonetheless loads of financial challenges on the horizon which can affect mortgage charges and borrower behaviour sooner or later.”
Also commenting, Propertymark NAEA president Mary-Lou Press provides: “Considering the fluctuations in base charges over time, the rise in the price of residing, and the present volatility within the financial system typically, it’s comprehensible as to why many second-time consumers who’re trying to find monetary stability are choosing longer fixed-term mortgages to higher handle their outgoings from any sudden will increase in rates of interest.
“However, contemplating two-year fixed-rate mortgages are additionally proving to be in style presently, it’s also equally comprehensible that many individuals are hoping that the bottom charges will ultimately fall additional and can due to this fact lead to extra inexpensive mortgage merchandise within the medium to long run.”
