Demand for variable and tracker mortgages has increased sharply in recent months, according to Moneyfacts. These products for just 6% of searches in September 2025 but rose to 13% by April 2026, more than doubling in popularity.

While still a smaller part of the market overall, this growth highlights a clear shift in borrower behaviour, with more people willing to consider alternatives to traditional fixed-rate deals.

A key driver of this change has been the impact of geopolitical events, particularly the conflict involving Iran. Rising oil prices heightened inflation concerns, which in turn pushed up funding costs for lenders and led to a rapid increase in mortgage rates.

As fixed rates surged in a short period, some borrowers have been more inclined to wait and see, opting for variable or tracker options that often start with lower initial rates.

Alongside this trend, shorter-term fixed deals have also gained popularity. Demand for two-year fixed mortgages rose by around 13%, reflecting a growing preference for flexibility during uncertain market conditions. Many borrowers are reluctant to lock into longer-term deals at higher rates, especially when there is hope that borrowing costs may stabilise or fall in the near future.

Overall, the data suggests borrowers are increasingly balancing risk and flexibility. While fixed-rate mortgages still dominate, more people are exploring variable options or shorter fixes as they navigate a rapidly changing market.

It is important to take professional advice before making any decision relating to your personal finances. Information within this article is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored advice and is for guidance only. Some rules may vary in different parts of the UK.