More than half of borrowers were looking at a two-year fixed interest rate in November, according to an analysis of comparison studies conducted on Moneyfacts.
The survey found that 53% of comparison searches were for two-year fixed rates.
Among first-time and refinancing borrowers, two-year fixed interest rates were even more popular, representing 70% and 62% of their searches respectively.
Second-time buyers showed more variation, with 41% looking at a two-year fix, 45% looking at a five-year fix or more and the rest looking at other options such as three-year deals and variable interest rates.
Of all types of borrowers, only 9% were looking for three-year deals and 7% were looking for a 10-year fix, the comparison site found.
Adam French, head of news at Moneyfactscompare.co.uk, said: “It is not surprising that so many borrowers are considering a two-year deal, given expectations that interest rates will continue to fall 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 mortgage rate, which cost 5.25%.
“Since then, however, two-year deals have become cheaper, with the average interest rate now at 4.86% and the average five-year deal at 4.91%. Both fell below 5% earlier this year for the first time since the mini-budget in September 2022.
“Despite this, second-time buyers appear to be prioritizing stability, predictability and protection against potential interest rate volatility over cheaper rates.
“They appear to be more concerned about securing long-term peace of mind, especially if they have higher borrowing levels and want to protect themselves against unexpected interest rate increases.”
NAEA Propertymark president Mary-Lou Press added: “Today’s figures indicate that consumer confidence continues to be driven by uncertainty about the direction of interest rates.
“The strong shift towards fixed products with a two-year term reflects the desire of many borrowers, especially first-time buyers and refinancers, to keep their options open if interest rates continue to fall next year.
“While short-term solutions are attractive in the current environment, it is notable that a significant proportion of second-time buyers are opting for longer-term stability.
“This matches what our member agents are hearing on the ground: Homeowners with larger loans or growing families are prioritizing predictability in their monthly payments, even if that means accepting a slightly higher rate.
“Ultimately, borrowers are trying to find the right balance between flexibility and security.”