UK mortgage borrowers are increasingly favouring short-term flexibility over long-term certainty, according to the latest market data from mortgage technology platform Twenty7tec.

The figures show a marked shift in borrower sentiment, with two-year and under fixed-rate deals now accounting for more than half of all fixed mortgage searches – the highest share ever recorded. In July 2025, these shorter fixes made up 52.04% of searches, while interest in long-term deals continued to fall sharply.

Searches for 10-year fixed mortgage products have dropped by 43.29% since May, and six-to-10-year fixes now account for just 13.14% of the market – their lowest share to date. Volumes for this term range have not been so low since December 2023, and outside of that traditionally quiet month, not since mid-2020.

“Borrowers don’t want to be locked in,” said Nakita Moss, head of lender at Twenty7tec.

“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.”

INTEREST RATES

The change in behaviour reflects growing speculation about future interest rate cuts. Where previously uncertainty pushed borrowers toward longer-term security, many are now seeking flexibility, anticipating potential drops in borrowing costs and keen to avoid being locked into today’s higher rates.

Despite the changing preferences, the overall level of activity in the mortgage market remains robust. Fixed-rate searches in July were down just 4% on June, and total fixed-rate activity for the year so far – at 12.68 million searches – is slightly ahead of the same period in 2024.

Remortgaging is also on the rise, with volumes up 18.90% year-on-year. Many borrowers who fixed at historically low rates five years ago are now reaching the end of their terms and returning to the market, often opting for shorter fixes while waiting for rates to improve.

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.”

Lenders appear to be responding to that demand. The number of available mortgage product variants reached a new record at the end of July, with 26,008 options on the market – 148 more than the previous month, and a 0.57% increase overall. It marks the first time the product count has breached the 26,000 threshold.