Almost two-thirds (58%) of second-time buyers 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 exhibits that as compared, solely round one in three householders searching for to remortgage (34%) and first-time buyers (31%) have been evaluating fastened offers longer than two years.
Overall, nevertheless, shorter term fixes are the preferred, with greater than half (55%) of these evaluating fastened term offers on moneyfactscompare.co.uk evaluating fastened fee phrases of two years or much less.
Moneyfactscompare.co.uk head of reports Adam French says: “Many second-time buyers could also be making peace of thoughts a precedence by searching for longer term mortgage offers regardless of the overall expectation for charges to maintain slowly falling within the short-to-medium term.”
“Instead, they’re prizing stability, predictability and safety from volatility – significantly if they’ve borrowed extra and elevated their publicity to unexpected fee rises.
“The Moneyfacts common two- and five-year mortgage charges are presently at 4.98% and 5.02%, respectively.”
“However, provided that inflation is presently predicted to take a seat above the Bank of England’s 2% goal till not less than 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 through the years, the rise in the price of dwelling, and the present volatility within the financial system on the whole, it’s comprehensible as to why many second-time buyers who’re looking out for monetary stability are opting for 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 widespread presently, additionally it is equally comprehensible that many individuals are hoping that the bottom charges will ultimately fall additional and can due to this fact end in extra inexpensive mortgage merchandise within the medium to lengthy term.”
