The future’s bright for buyers – according to buyers themselves

23 June 2025

That’s the sentiment coming through loud and clear in new data from Twenty7tec, which suggests renewed confidence in the market as more borrowers anticipate that mortgage rates will fall.

In May 2025, nearly half of all mortgage searches and ESIS documents focused on short-term fixes. Of the 1.92 million ESIS documents generated via the platform, 912,378 were for mortgage products fixed for two years or less – accounting for 47.7% of total activity. That’s up from 40.5% in October 2024 and just 22% in September 2022.

These short-term fixes allow borrowers to secure a stable rate for now, while keeping their options open to switch if rates fall in the near future.

Borrower behaviour has continued to shift significantly in recent years:

Autumn 2022 (as rate hikes began): Most borrowers opted for longer-term security, with the majority of ESIS documents focused on 3- to 10-year fixes
December 2022 (base rate at 3.5%): Short-term fixes climbed to 39.2% of the market
May 2023 (as rates peaked): 2-year fixes reached 42.8%, with short-term confidence clearly growing

The rise in short-term fixes also reflects broader market sentiment. With inflation easing and the Bank of England cutting the base rate to 4.25% in May – its first reduction of 2025 – expectations of further rate drops later this year are building. Borrowers appear to be positioning themselves to take advantage of possible future reductions, showing just how closely consumer sentiment is tracking wider economic signals.

Nathan Reilly, director at Twenty7tec, said:

“These shifts in product choice reflect changing borrower needs. In late 2022, many were looking for longer-term certainty as rates climbed. But by mid-2023, the mood had shifted – more borrowers were backing short-term fixes in the hope that rates would start to fall.”

Borrowers who previously opted for 5- or 10-year deals during periods of volatility are now prioritising short-term flexibility – betting that mortgage rates may drop within their next refinancing window.

“But what does this mean for advisers?” Nathan continued. “With more customers choosing shorter-term deals, brokers need to be prepared for more frequent refinancing conversations. Now’s the time to ask whether your CRM system is ready – is it helping you stay in regular contact, track the client journey effectively, and keep your pipeline visible?”

Twenty7tec’s platform supports advisers in navigating this evolving landscape, with real-time product sourcing, lender criteria and affordability tools, and an integrated CRM to centralise advice. This shift in product mix highlights how digital tools are enabling brokers to respond quickly to changing borrower needs and shifting market sentiment.

For more information, visit: https://www.twenty7tec.com