Of those homebuyers, almost six in 10 or 58% considered longer-term fixed deals during the 30 days to Oct. 1

A growing proportion of second-time buyers are opting for fixed mortgage terms of three years or longer, according to new data from price comparison site Moneyfacts.

Of those homebuyers, almost six in 10 or 58% considered longer-term fixed deals during the 30 days to Oct. 1. By comparison, only 34% of remortgaging homeowners and 31% of first-time buyers looked at fixed rates beyond two years.

Nonetheless, shorter-term fixes remain the most common choice overall, with 55% of all users on Moneyfactscompare.co.uk comparing fixed-rate terms of two years or less.

Many second-time buyers may be making peace of mind a priority by seeking longer term mortgage deals despite the general expectation for rates to keep slowly falling in the short-to-medium term, said Adam French, head of communications at Moneyfacts. Instead, they are prizing stability, predictability and protection from volatility – particularly if they have borrowed more and increased their exposure to unforeseen rate rises.

The Moneyfacts average two- and five-year mortgage rates are currently at 4.98% and 5.02%, respectively. However, given that inflation is currently predicted to sit above the Bank of England’s 2% target until at least 2027 and that the cost of government borrowing has been climbing, there are still plenty of economic challenges on the horizon which may influence mortgage rates and borrower behaviour in the future, he said.

Considering the fluctuations in base rates over the years, the rise in the cost of living, and the current volatility in the economy in general, it is understandable as to why many second-time buyers who are searching for financial stability are opting for longer fixed-term mortgages to better manage their outgoings from any sudden increases in interest rates, commented Mary-Lou Press, president at industry body NAEA Propertymark.