Remortgage borrowers opting for short-term fixed rate mortgage security

by Aaron Strutt

Aug 24 2025

Are borrowers opting for two- or five-year fixes?

There was a shift in borrower behaviour in July with a substantial rise in mortgage completions, according to the latest LMS Monthly Remortgage Snapshot.

The 71% rise in completions suggests homeowners are acting quickly to secure new deals. Instructions saw a small decline of 4% over the month, while the overall cancellation rate crept up by 1%.

Borrowers opted for short-term certainty in July with two-year fixed rate products becoming the most popular choice. Close to half (46%) of those who remortgaged took out a two-year fixed rate, while 41% took out a five-year fixed deal.

28% remortgaged to release equity of borrow more money

Over a quarter (26%) of borrowers cited lower monthly payments as their primary goal when remortgaging, while 28% looked to release equity on their property or borrow more money.

Nick Chadbourne, LMS CEO, said: “Further spikes are likely to occur around quarter-end, which is when more fixed-rate products expire. Until then, I'm expecting activity to remain steady.”

Are two-year fixes cheaper than five-year fixes? 

According to data from Moneyfacts.co.uk, the average mortgage rate is just over 5% but the most competitively priced two-year fixes are priced at just over 3.75% and the five-year fixes are slightly higher at 3.90% providing you have a 35% or 40% deposit. Rates are not a huge amount higher if you have a smaller deposit.

Compare deals across high street banks, building societies, and specialist lenders, and always factor in arrangement fees and incentives, especially when remortgaging, before choosing your mortgage. Or let Trinity search the market for you!

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage