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More mortgage borrowers turning to shorter-term fixes

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Adam French, Head of Consumer Finance 01603 476154 Email Adam
05/06/2026

More mortgage borrowers turning to shorter-term fixes

Borrowers are increasingly turning to shorter-term fixed-rate mortgages in response to higher rates, new analysis of mortgage search activity on Moneyfactscompare.co.uk has found.

The share of Moneyfactscompare.co.uk website users comparing two-year fixed-rate mortgages increased from 48.4% in February to 55.6% in May, while demand for five-year fixed deals fell from 27.7% to 21.8% over the same time. Searches for 10-year fixed-rate mortgages also eased, falling from 6.5% to 4.5%. 

Despite the average five-year fixed mortgage rate (5.68%) being lower than the average two-year fixed rate (5.78%) in May, demand continued to shift towards shorter-term deals. More borrowers appear to be willing to take a calculated risk that they will have the opportunity to refinance sooner at lower rates instead of securing the lowest available rate today.

 

Mortgage Feb March April May

2-yr fix

 48.4% 54.8% 53.6% 55.6%
5-yr fix 27.7% 25.1% 23.2% 21.8%
10-yr fix 6.5% 4.6% 5.3% 4.5%

 

Monthly share of users of moneyfactscompare.co.uk comparing mortgage products by term. Users can compare multiple product types and terms per session. Source: Moneyfactscompare.co.uk

 

 

Moneyfacts Average Mortgage Rate by term (all LTVs)

 

Mortgage 1 Feb 1 March 1 April 1 May

2-yr fix

 4.85% 4.84% 5.84% 5.78%
5-yr fix 4.94% 4.96% 5.75% 5.68%
10-yr fix 5.60% 5.61% 6.01% 6.15%

 

Average advertised rate for new fixed rate mortgages by term (all LTVs) on a first of month basis. Source: Moneyfactscompare.co.uk

 

More mortgage borrowers turning to shorter-term fixes

Borrowers are increasingly turning to shorter-term fixed-rate mortgages in response to higher rates, new analysis of mortgage search activity on Moneyfactscompare.co.uk has found.

The share of Moneyfactscompare.co.uk website users comparing two-year fixed-rate mortgages increased from 48.4% in February to 55.6% in May, while demand for five-year fixed deals fell from 27.7% to 21.8% over the same time. Searches for 10-year fixed-rate mortgages also eased, falling from 6.5% to 4.5%. 

Despite the average five-year fixed mortgage rate (5.68%) being lower than the average two-year fixed rate (5.78%) in May, demand continued to shift towards shorter-term deals. More borrowers appear to be willing to take a calculated risk that they will have the opportunity to refinance sooner at lower rates instead of securing the lowest available rate today.

 

Mortgage Feb March April May

2-yr fix

 48.4% 54.8% 53.6% 55.6%
5-yr fix 27.7% 25.1% 23.2% 21.8%
10-yr fix 6.5% 4.6% 5.3% 4.5%

 

Monthly share of users of moneyfactscompare.co.uk comparing mortgage products by term. Users can compare multiple product types and terms per session. Source: Moneyfactscompare.co.uk

 

 

Moneyfacts Average Mortgage Rate by term (all LTVs)

 

Mortgage 1 Feb 1 March 1 April 1 May

2-yr fix

 4.85% 4.84% 5.84% 5.78%
5-yr fix 4.94% 4.96% 5.75% 5.68%
10-yr fix 5.60% 5.61% 6.01% 6.15%

 

Average advertised rate for new fixed rate mortgages by term (all LTVs) on a first of month basis. Source: Moneyfactscompare.co.uk

 

Adam French, Head of Consumer Finance at Moneyfactscompare.co.uk, said:

"The latest search data from Moneyfactscompare.co.uk reveals that demand is increasingly shifting towards two-year fixed-rate mortgages, while the attraction to five and 10-year fixes continues to decline.

"However, this trend is not being driven purely by pricing. On 1 May, the average five-year fixed mortgage rate stood at 5.68%, 10 bps below the average two-year fixed rate of 5.78%. Despite this, borrowers continued to favour shorter fixed-term deals.

"It appears many borrowers believe the recent spike in mortgage rates will prove temporary and are willing to pay a small premium for a shorter fix in the expectation that they will be able to refinance onto a more competitive deal in the future.

"The continued decline in demand for 10-year fixes backs this up. Unsurprisingly, borrowers are reluctant to commit to today's rates for the long term, despite the payment certainty these products can offer.

"Unlike homeowners in some other countries who routinely fix their mortgage rates for decades British borrowers want the security of a fixed monthly repayment but value the flexibility of shorter-term deals. Regardless of the volatility of the last few years many seem to be positioning themselves for a future where mortgage rates are lower than they are today.”

Adam French, Head of Consumer Finance at Moneyfactscompare.co.uk, said:

"The latest search data from Moneyfactscompare.co.uk reveals that demand is increasingly shifting towards two-year fixed-rate mortgages, while the attraction to five and 10-year fixes continues to decline.

"However, this trend is not being driven purely by pricing. On 1 May, the average five-year fixed mortgage rate stood at 5.68%, 10 bps below the average two-year fixed rate of 5.78%. Despite this, borrowers continued to favour shorter fixed-term deals.

"It appears many borrowers believe the recent spike in mortgage rates will prove temporary and are willing to pay a small premium for a shorter fix in the expectation that they will be able to refinance onto a more competitive deal in the future.

"The continued decline in demand for 10-year fixes backs this up. Unsurprisingly, borrowers are reluctant to commit to today's rates for the long term, despite the payment certainty these products can offer.

"Unlike homeowners in some other countries who routinely fix their mortgage rates for decades British borrowers want the security of a fixed monthly repayment but value the flexibility of shorter-term deals. Regardless of the volatility of the last few years many seem to be positioning themselves for a future where mortgage rates are lower than they are today.”

Notes to editors

You are welcome to use part or all of this press release, so long as we are sufficiently sourced. We would appreciate a link back to Moneyfactscompare.co.uk.

Pioneering financial comparison technology for over 35 years, Moneyfacts Group plc is the UK’s leading provider of retail financial product data. Used by virtually every bank and building society in the UK, and supplied to the Bank of England, Financial Conduct Authority, Financial Ombudsman Service, HM Treasury, Prudential Regulatory Authority and UK Finance.

Our expert research team monitors the thousands of mortgages, savings, credit card, personal loan, banking, life, pension and investment products in the UK.

Moneyfactscompare.co.uk is the financial product price comparison site, launched as Moneyfacts.co.uk in 2000 and rebranded to Moneyfactscompare.co.uk in 2023, which helps consumers compare thousands of financial products, including credit cards, savings, mortgages and many more. Unlike other comparison sites, Moneyfactscompare.co.uk shows whole of market data regardless of commercial bias, showing consumers a true picture of the best products based on the criteria they select.

For more information about us please see our key facts.

Broadcast

Our broadcast suite enables our finance experts to appear in-vision for television, and we regularly comment live on national and regional radio.

To arrange an interview for radio or television, please contact our press department. We have an in-house broadcast room.

 

Notes to editors

You are welcome to use part or all of this press release, so long as we are sufficiently sourced. We would appreciate a link back to Moneyfactscompare.co.uk.

Pioneering financial comparison technology for over 35 years, Moneyfacts Group plc is the UK’s leading provider of retail financial product data. Used by virtually every bank and building society in the UK, and supplied to the Bank of England, Financial Conduct Authority, Financial Ombudsman Service, HM Treasury, Prudential Regulatory Authority and UK Finance.

Our expert research team monitors the thousands of mortgages, savings, credit card, personal loan, banking, life, pension and investment products in the UK.

Moneyfactscompare.co.uk is the financial product price comparison site, launched as Moneyfacts.co.uk in 2000 and rebranded to Moneyfactscompare.co.uk in 2023, which helps consumers compare thousands of financial products, including credit cards, savings, mortgages and many more. Unlike other comparison sites, Moneyfactscompare.co.uk shows whole of market data regardless of commercial bias, showing consumers a true picture of the best products based on the criteria they select.

For more information about us please see our key facts.

Broadcast

Our broadcast suite enables our finance experts to appear in-vision for television, and we regularly comment live on national and regional radio.

To arrange an interview for radio or television, please contact our press department. We have an in-house broadcast room.

 

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Adam French Head of Consumer Finance
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©2026 Moneyfacts Group plc. All Rights Reserved. Use of this Website constitutes acceptance of the Company’s General Terms of Use & Privacy Policy. Moneyfacts Group plc is registered in England and Wales, company no. 4063110. Registered office: Moneyfacts House, 66-70 Thorpe Road, Norwich, NR1 1BJ. Moneyfacts, MONEY £ ACTS and INTEREST are Registered Trademarks.