More than half of borrowers were looking at two-year fixed rates in November, analysis of comparison searches carried out on Moneyfacts suggests.
Its research found that 53% of comparison searches were for two-year fixed rates.
For first-time buyers and remortgage borrowers two-year fixed rates were even more popular, accounting for 70% and 62% of their searches respectively.
Second-time buyers showed more variation, with 41% looking at two-year fixes, 45% looking at fixing for five-years or more and the remainder looking at other options, such as three-year deals and variable rates.
Across all borrower types, only 9% were searching for three-year deals and 7% for 10-year fixes, the commparison site found.
Moneyfactscompare.co.uk head of news Adam French says: “It’s not surprising that so many borrowers are considering two-year deals, given expectations for rates to continue falling in the short to medium term.
“At the beginning of the year, the average two-year fixed mortgage rate was 5.48%, higher than the typical five-year deal, which was priced at 5.25%.
“However, two-year deals have since become cheaper, with average rates now at 4.86% and the average five-year deal sat at 4.91%, both dipping below 5% earlier this year for the first time since the mini budget in September 2022.
“Despite this, second-time buyers appear to be prioritising stability, predictability, and protection from potential rate volatility over cheaper rates.
“They seem to be more concerned with securing long-term peace of mind, especially if they have higher levels of borrowing and want to shield themselves from unexpected rate hikes.”
NAEA Propertymark president Mary-Lou Press adds: “Today’s figures indicate that consumer confidence is still being shaped by uncertainty around the direction of interest rates.
“The strong shift towards two-year fixed products reflects a desire among many borrowers, particularly first-time buyers and those remortgaging, to keep their options open should rates continue to ease next year.
“While short-term fixes are attractive in the current climate, it’s notable that a significant share of second-time buyers are opting for longer-term stability.
“This aligns with what our member agents are hearing on the ground: homeowners with larger loans or growing families are prioritising predictability in their monthly payments, even if that means accepting a slightly higher rate.
“Ultimately, borrowers are trying to strike the right balance between flexibility and security.”
