Brand Logo Moneyfacts Group plc
Telephone Icon T: 01603 476476 Email Icon E: enquiries@moneyfacts.co.uk LinkedIn Icon

Rocketing rates drive buyers to 2-year fix & variable deals

Home > Press Office > Moneyfacts Consumer Press Releases > Rocketing rates drive buyers to 2-year fix & variable deals
Image of Moneyfacts.co.uk Brand Logo Image of Moneyfacts.co.uk Brand Logo Image of Moneyfacts.co.uk Brand Logo
Adam French, Head of Consumer Finance 01603 476154 Email Adam
08/04/2026
Colour Twitter Icon LinkedIn Icon

Rocketing rates drive borrowers toward two-year fix and variable deals

Rate rises have quickly shifted borrower behaviour with more pivoting towards two-year deals in the hope that the rate spike being driven by the conflict in Iran proves short-lived, mortgage search data from moneyfactscompare.co.uk reveals.

Analysis of consumers comparing fixed-rate mortgages on moneyfactscompare.co.uk in the 30 days to 2 April 2026 compared to the 30 days to 2 March 2026 reveals:

  • Shift to shorter fixes: Demand for two-year fixes has surged (+13% overall) as borrowers favour flexibility amid uncertainty.
  • Five-year fixes falling out of favour: Overall demand down -9%, with sharp drops among homemovers (-9%) and remortgage borrowers (-15%).
  • Spike in variable interest from movers: Homemovers drove a +47% jump in variable rate searches, albeit from a low base (12% share).
  • Rates driving behaviour: Two-year fixes up +99bps and five-year fixes +81bps comparing the start of February to the start of April, vs just +28bps for variable rates.

Rocketing rates drive borrowers toward two-year fix and variable deals

Rate rises have quickly shifted borrower behaviour with more pivoting towards two-year deals in the hope that the rate spike being driven by the conflict in Iran proves short-lived, mortgage search data from moneyfactscompare.co.uk reveals.

Analysis of consumers comparing fixed-rate mortgages on moneyfactscompare.co.uk in the 30 days to 2 April 2026 compared to the 30 days to 2 March 2026 reveals:

  • Shift to shorter fixes: Demand for two-year fixes has surged (+13% overall) as borrowers favour flexibility amid uncertainty.
  • Five-year fixes falling out of favour: Overall demand down -9%, with sharp drops among homemovers (-9%) and remortgage borrowers (-15%).
  • Spike in variable interest from movers: Homemovers drove a +47% jump in variable rate searches, albeit from a low base (12% share).
  • Rates driving behaviour: Two-year fixes up +99bps and five-year fixes +81bps comparing the start of February to the start of April, vs just +28bps for variable rates.

 

Term

Total share (Feb)

Total share (Mar)

Month on Month change (February to March)

All mortgage borrowers

First-time Buyers

Home movers

Remortgage borrowers

2-yr fix

48%

55%

+13%

+20%

+15%

+11%

5-yr fix

28%

25%

-9%

+16%

-9%

-15%

Variable

12%

13%

+7%

-18%

+47%

-12%

Month on month change in users of moneyfactscompare.co.uk comparing mortgage products. Excludes other terms. Users can compare multiple product types and terms per session. Figures rounded to nearest full percentage point.

Source: Moneyfactscompare.co.uk

 

 

Term

Total share (Feb)

Total share (Mar)

Month on Month change (February to March)

All mortgage borrowers

First-time Buyers

Home movers

Remortgage borrowers

2-yr fix

48%

55%

+13%

+20%

+15%

+11%

5-yr fix

28%

25%

-9%

+16%

-9%

-15%

Variable

12%

13%

+7%

-18%

+47%

-12%

Month on month change in users of moneyfactscompare.co.uk comparing mortgage products. Excludes other terms. Users can compare multiple product types and terms per session. Figures rounded to nearest full percentage point.

Source: Moneyfactscompare.co.uk

 

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

“The speed and scale of rate rises over the past few weeks has quickly shifted borrower behaviour. With five-year fixes jumping by more than 80 basis points, many are pivoting towards two-year deals in the hope that the rate spike being driven by the conflict in Iran proves short-lived.

“Demand for five-year fixes is usually strongest among homemovers, who value certainty in their monthly payments, particularly as they have usually taken on a larger debt.  Instead, there has been a dramatic swing towards shorter term options. Remortgage borrowers who are already facing significant payment shocks also appear reluctant to lock in at elevated rates for an extended period.

“Some borrowers may also be banking on rates falling sooner than the market is currently expecting. There has been a notable, if still relatively small, shift towards variable rate mortgages, especially among homemovers. While these products remain a minority choice, the uptick suggests some borrowers are willing to take on more risk, betting that rates could fall back in the near-term.”

 

Change in average mortgage rates

 

Term

1-Feb

1-Apr

Difference

2-yr fix

4.85

5.84

+99 bps

5-yr fix

4.94

5.75

+81 bps

Variable*

4.41

4.69

+28 bps

*Average 2-year tracker rate

Source: Moneyfactscompare.co.uk

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

“The speed and scale of rate rises over the past few weeks has quickly shifted borrower behaviour. With five-year fixes jumping by more than 80 basis points, many are pivoting towards two-year deals in the hope that the rate spike being driven by the conflict in Iran proves short-lived.

“Demand for five-year fixes is usually strongest among homemovers, who value certainty in their monthly payments, particularly as they have usually taken on a larger debt.  Instead, there has been a dramatic swing towards shorter term options. Remortgage borrowers who are already facing significant payment shocks also appear reluctant to lock in at elevated rates for an extended period.

“Some borrowers may also be banking on rates falling sooner than the market is currently expecting. There has been a notable, if still relatively small, shift towards variable rate mortgages, especially among homemovers. While these products remain a minority choice, the uptick suggests some borrowers are willing to take on more risk, betting that rates could fall back in the near-term.”

 

Change in average mortgage rates

 

Term

1-Feb

1-Apr

Difference

2-yr fix

4.85

5.84

+99 bps

5-yr fix

4.94

5.75

+81 bps

Variable*

4.41

4.69

+28 bps

*Average 2-year tracker rate

Source: Moneyfactscompare.co.uk

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.

 

Contact Us If you're looking for extra comment, a chart or more information, then please give us a call. We are always more than happy to help.
Adam French Head of Consumer Finance
01603 476154
Email Adam
Rachel Springall Finance Expert
01603 476210
Email Rachel
Caitlyn Eastell Personal Finance Analyst
01603 476169
Email Caitlyn
Brand Logo Moneyfacts Group plc
Moneyfacts Group is the UK’s leading provider of retail financial product data. Pioneering financial comparison technology for over 35 years, Moneyfacts Group plc data is used throughout the UK Financial Industry.
Contact us

Moneyfacts House


66-70 Thorpe Road


Norwich


NR1 1BJ


01603 476476


enquiries@moneyfacts.co.uk

©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.

©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.