Shorter fixes back in favour – webpage

In the second quarter of 2025, around 50% of new mortgages were taken out on two-year fixed terms, compared with 35% choosing five-year deals. Many borrowers took the decision to remortgage sooner, hoping to benefit if Bank Rate continues to fall over the next couple of years. 

This marks a notable change from 2022, when interest rates were rising sharply. At that time, longer five-year fixed deals were more attractive, as borrowers looked to lock in lower rates and protect themselves from further increases in mortgage costs. 

Despite growing interest in shorter fixes, longer mortgage terms remain worth careful consideration. Analysts do not expect mortgage rates to return to the historic lows seen in 2021. Instead, rates are forecast to settle at a higher level, potentially around 3.5% over the longer term. It’s also important to remember that expectations of future Bank Rate cuts are already factored into fixed-rate pricing. 

Choosing between a two or five-year fix, or other type of mortgage, depends on individual circumstances, risk appetite and future plans. If you’re considering your next move, we can help you weigh up the options and select a mortgage deal that best supports your financial goals. 

It is important to take professional advice before making any decision relating to your personal finances. Information within this article is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored advice and is for guidance only. Some rules may vary in different parts of the UK.