The i - Demand for short mortgage fixes soars as homeowners hope for lower rates

The number of households wanting to fix their mortgage rate for just two years has surged in 2024 as homeowners remain “optimistic” that rates will fall and they will be able to get better deals in 2026.

UK Finance figures for The i newspaper show in the first three months of 2024, 83,880 mortgages of two years or less were taken out, compared to 83,010 five-year fixes. A year previously, just 50,020 mortgages of two-years or less were taken out, compared to 125,060 five-year ones.

“We would urge borrowers to remain cautious about the future direction of mortgage rates as there are no guarantees what rates will do. Many of our clients are taking two-year fixes rather than five-year deals but this may change if five-year fixes continue to edge down and closer to 4 per cent,” explained Aaron Strutt of Trinity Financial.

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