Data from Moneyfacts Analyser showed that 48.77% of those using the Moneyfactscompare website in the 30 days to 28 August wanted a shorter-term deal.
The largest cohort of consumers looking for two-year fixed rate mortgages were remortgagors, making up 22.54% of the search activity. Some 19.11% were second-time buyers and 4.12% were first-time buyers.
Some 6.31% of people looked for a 10-year fix, despites rates being higher compared to a few years ago. Meanwhile, Moneyfacts found that one-year fixed deals were the least popular, accounting for just 0.7% of searches.
Two-year deals were also most popular with those searching for variable rate mortgages, with remortgage borrowers making up 1.14% of queries, second-time buyers 0.6% and first-time buyers 0.38%.
A spokesperson for Moneyfactscompare.co.uk said: “It comes as little surprise that many borrowers are interested in a two-year term, given the general expectation for rates to continue steadily falling over the short to medium term. The Moneyfacts average two-year fixed mortgage rate has fallen from 5.2% at the start of 2025 to 4.98% now, recently dipping below 5% for the first time since the aftermath of the so-called mini Budget in September 2022.
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“However, given that inflation is forecast to sit above the Bank of England’s 2% target until at least 2027 and that the cost of government borrowing has been climbing, there are still plenty of economic challenges on the horizon, which may influence mortgage rates and borrower behaviour in the future.”
