Twenty7tec: Interest rate decision spikes mortgage activity
23 June 2023: Twenty7tec reveals that the Bank of England’s interest rate increase decision has resulted in spikes in mortgage activity.
Twenty7tec, the leading adviser tech platform, has revealed that yesterday’s Bank of England interest rate rise once again created a spike in mortgage activity and changes in product availability.
The findings:
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- Yesterday, there were 873 fewer mortgages products available than one week ago
- Yesterday, there were 79,867 mortgage searches by advisers on the platform, up 16% on an average Thursday and 7.8% higher than the average previous interest rate decision days in the past two years.
- Yesterday, there were 32,458 Purchase mortgage searches by advisers on the platform, down 4.2% on an average Thursday and down 7.6% compared to the average previous interest rate decision days in the past two years.
- Purchase mortgage searches are now at their lowest levels since October 2022.
- Yesterday, there were 14,050 Buy To Let mortgage searches by advisers on the platform, up 4.1% on an average Thursday but down 5.7% compared to the average previous interest rate decision days in the past two years.
- Buy To Let mortgage searches are now at their lowest proportion of all mortgage searches since August 2021
- Yesterday, there were 40,902 remortgage searches by advisers on the platform, up 38.8% on an average Thursday and 20.7% higher than previous interest rate decision days in the past two years.
- Searches for remortgages have outstripped demand for purchase mortgages for the past nine days (the first time that searches for remortgages have outnumbered purchases since the mini Budget period in late 2022)
James Tucker, founder and CEO of Twenty7tec, explains:
“Every day this week has been busier than the corresponding day last week.
“That’s due, in part, to the fact that this interest rate rise appears to have been so broadly baked in that the market wasn’t just expecting it, but had been acting ahead of time to secure mortgages at lower rates.
“Today is going to be a major day of activity for lenders and platforms like ours as we update hundreds and maybe even thousands of mortgage products to be at the latest rates.
“So we’d expect increased levels of activity to continue into today and through Monday at least.
“Monday and Tuesday this week were two of the 12 busiest ever days for mortgage searches as people sought rates ahead of the announcement.
“As of yesterday, there are 800 fewer mortgage products on our system than there were a week ago, which means more requests attempting to access fewer products and the kind of potential bottleneck we last saw in the stamp duty holiday period of 2021.
“The past 24 hours have undoubtedly been a busy one for customers and mortgage advisers alike, as they race to find the most suitable deal.
“And that’s not forgetting the business of the lenders who over the past 24 hours have been making adjustments in line with the new rate.
“We’re continuing to work hard to give house buyers and advisers the best information they can have during this time.
“We’ve already seen hundreds of products change in the market over the past week and are expecting more to be changed today and on Monday in light of the new rate announcement.”
Kindly shared by Twenty7tec
Main article photo courtesy of Pixabay
