Are you about to sign on the dotted line for your mortgage? You might want to hold fire and see how long you’re fixing for – because most borrowers are betting on a two-year deal.

New research from Santander shows that 60% of borrowers are opting for two-year fixed rate mortgages. That’s a massive change from recent years, where five-year fixes were the most popular choice.

So, why the sudden shift?

It seems many people are hoping that interest rates will be lower in two years’ time, meaning they can get a cheaper deal when their current one ends.

However, experts warn that this might be wishful thinking. Ravesh Patel, a top mortgage expert at Reside Mortgages, says: “For a long time, the UK had really low interest rates, so it’s understandable that people think they’ll go back down to that level. But things have changed.”

Are you playing with fire?

Patel believes that while the Bank of England might lower rates a bit, there’s no guarantee they’ll plummet as much as people hope. He also points out that mortgage rates don’t always follow the Bank of England’s lead.

Adding to the uncertainty, the upcoming Budget could also shake things up in the mortgage market.

The five-year fix: Your safety net?

With all this uncertainty swirling around, Patel suggests that more people should consider locking in their mortgage rate for longer with a five-year fix, especially if they want peace of mind.

What does the future hold?

Santander reckons interest rates will fall to 3.75% by the end of next year and then hover between 3% and 4% for the foreseeable future.

Graham Sellar, a top dog at Santander, warns that it’s important to keep an eye on ‘swap rates’, which is the rate lenders pay to borrow money. These rates have a big influence on what mortgage rates they offer.

He says: “While the Bank of England rate doesn’t completely control mortgage rates, it can impact these swap rates. This means that anyone buying a home or remortgaging might see rates stay pretty steady compared to the rollercoaster of the last few years.”

So, the big question is: are you willing to gamble on a two-year fix in the hope that rates go down? Or is the security of a five-year fix more your style? Whatever you decide, make sure you do your research and get expert advice before you sign on the dotted line.