Mortgage searches jump 10% following interest rate hike
The markets give over an 80% chance that the base rate will hit at least 5.75% this year and could reach 6%.
Following the latest Bank Rate projections of 5.75% and 6%, Twenty7tec, has found that there’s a 10% bump in mortgage searches the week after a rate hike compared to mortgage searches the week before.
The data shows that on the day of a rate hike, mortgage searches are 8.89% higher than the day before.
Nathan Reilly, director at Twenty7tec, said: “We’ve run the stats and have seen that there’s a 10% hike in mortgage search activity the week after the announcement compared to the week before.
“If the market has called it right, mortgage advisers are going to be busier than usual from Friday. And lenders will, of course, be busy thinking about how to modify products. The vast majority of lenders now make adjustments within the first 24 hours of a rate rise.
"Our team will be working hard to ensure that advisers and house buyers get the very best information as soon as we hear from the Bank of England.”
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