Second-time buyers dominate demand for longer term fixed rates

Second-time buyers are dominating demand for longer term fixed mortgage deals, new data from Moneyfacts Analyser shows.

Almost two-thirds (58%) of second-time buyers who compared mortgage deals using the Moneyfactscompare website were considering terms of three years or longer in the 30 days to 1st October 2025.

In comparison, only around one in three homeowners seeking to remortgage (34%) and first-time buyers (31%) were comparing fixed deals longer than two years. 

Overall, however, shorter term fixes remain the most popular, with more than half (55%) of those comparing fixed rate terms of two years or less. 

Adam French, head of news at Moneyfactscompare, said: “Many second-time buyers may be making peace of mind a priority by seeking longer term mortgage deals despite the general expectation for rates to keep slowly falling in the short-to-medium term. Instead, they are prizing stability, predictability and protection from volatility – particularly if they have borrowed more and increased their exposure to unforeseen rate rises.

“The Moneyfacts average two and five-year mortgage rates are currently at 4.98% and 5.02%, respectively. However, given that inflation is currently predicted 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.”

Mary-Lou Press, NAEA Propertymark president, commented: “Considering the fluctuations in base rates over the years, the rise in the cost of living, and the current volatility in the economy in general, it is understandable as to why many second-time buyers who are searching for financial stability are opting for longer fixed term mortgages to better manage their outgoings from any sudden increases in interest rates. 

“However, considering two-year fixed rate mortgages are also proving to be popular currently, it is also equally understandable that many people are hoping that the base rates will eventually fall further and will therefore result in more affordable mortgage products in the medium to long term.”