UK mortgage borrowers are turning away from long-term fixed-rate deals in favour of shorter-term flexibility, according to new data from mortgage tech provider Twenty7tec.
In July 2025, 2-year and under fixed-rate products accounted for 52.04% of all fixed mortgage searches, the highest ever recorded. In contrast, searches for 6-to-10-year fixes have dropped to just 13.14% of the market – their lowest share on record – with interest in 10-year deals down 43.29% since May.
Nakita Moss, head of lender at Twenty7tec, said: “Borrowers don’t want to be locked in. They’re holding out for rate drops, and shorter fixes give them a chance to reassess sooner.
“That means more people are remortgaging, more are opting for short deals, and fewer are choosing to tie themselves in for the long haul.”
The trend comes as speculation over the future direction of interest rates continues. While overall fixed mortgage search volumes were down just 4% month-on-month, activity remains strong. July was the busiest on record for mortgage searches, up 5% on the same month last year.
Year-to-date fixed mortgage searches reached 12.68 million by the end of July, compared to 12.58 million during the same period in 2024.
Remortgage activity has also risen sharply, with volumes up 18.90% year-on-year as borrowers exit 5-year fixes taken during previous low-rate periods.
Lenders have responded by expanding their offerings, with the number of mortgage product variants reaching a record 26,008 in July – the first time the market has surpassed 26,000 products. That’s an increase of 148 from the previous month.
Nathan Reilly, commercial director at Twenty7tec, said: “We’re not seeing hesitation – we’re seeing calculation. People are watching interest rates, reading the headlines, and being supported by advisers to opt for products that give them more short term flexibility.
“For advisers, it’s a market that demands up-to-date insight, customer knowledge, and a strong product match. For lenders, it’s about keeping options open.”
