Two-Year Mortgages: The Comeback Kid
- Sarah Ruivivar
- Dec 17
- 2 min read
In the ever-changing world of mortgages, two-year fixed-rate deals are making a stylish comeback!
According to moneyfactscompare.co.uk, half of the borrowers shopping for mortgages in November 2025 are eyeing these short-term options. First-time buyers are especially keen, with a whopping 70% considering the two-year fix, while 62% of remortgage customers are also jumping on the bandwagon.
But why the sudden love for shorter terms? Well, there's a glimmer of hope that interest rates might drop in the coming months. Adam French from Moneyfactscompare.co.uk explains that the average two-year fixed rate has dipped to 4.86%, making it more appealing than the 5.25% we saw at the year's start.
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However, not everyone is swayed by the allure of short-term savings. Second-time buyers, with 45% leaning towards five-year or longer terms, seem to prioritise stability over immediate savings. They're looking for peace of mind and protection from potential rate hikes, especially if their borrowing levels are higher.
Mary-Lou Press from NAEA Propertymark notes that while many borrowers are keeping their options open with two-year deals, a significant number of second-time buyers are opting for the predictability of longer-term fixes. This trend highlights the delicate balance between flexibility and security that borrowers are trying to achieve.
With the gap between two and five-year deals narrowing, seeking professional advice is more crucial than ever. So, whether you're a first-time buyer or a seasoned homeowner, it's time to weigh your options and find the mortgage that suits your needs best!
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