Analysis shows borrowers opting for two-year fixes amid rate rises

April 16, 2026 by Brendan O'Neill

Borrowers

The newest study of mortgage product search trends in the UK indicates that there has been a dramatic shift towards two-year fixed products, as borrowers try to navigate the turbulent market.

This finding comes from an examination of search trends on the Moneyfactscompare website. The analysis compared product searches during the 30-day period to 2nd April with the same period up to 2nd March. The more recent 30 days have seen sharp spikes in mortgage rates, and this has been clearly reflected in the choices being made by borrowers.

An increase in demand for two-year fixed rate products of 13% throughout this period has occurred. By comparison, consumer demand for longer five-year fixed products fell by 9%. Given that five-year fixes currently have lower rates on average, this indicates that borrowers are focused on flexibility rather than getting the lowest possible rate at the moment.

The 9% fall in searches for five-year fixes is among those looking to move home. When it comes to remortgage customers, the trend away from these products is even greater – at 15%.

Adam French is the Moneyfactscompare consumer finance head. Talking to Mortgage Introducer, he said this shift seemed to be driven by the rapid rises in rates:

“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.”

This is understandable, but professionals with the CeMAP mortgage advisor qualification would point out that fast reductions are not guaranteed.