The Bank of England’s decision to raise the base rate of interest from 0.5% to 0.75% has had a significant impact on the UK mortgage market. According to a report from Twenty7tec, a leading provider of mortgage technology, there has been a 40% increase in remortgage searches since the rate hike was announced.
The Bank of England’s decision to raise the base rate of interest was made in order to help keep inflation under control. However, it has had a direct impact on mortgage holders, as it means that their monthly payments will increase. This has led to an increase in people looking to remortgage their existing mortgage in order to take advantage of lower interest rates.
Twenty7tec’s report found that the number of searches for remortgages had increased by 40% since the Bank of England’s announcement. This is a significant increase, and shows that many people are taking action to protect themselves from the increased costs associated with the rate hike.
The report also found that the majority of people searching for remortgages were looking for fixed-rate deals. This is likely due to the fact that fixed-rate deals offer more security, as they guarantee that the interest rate will remain the same for the duration of the deal. This means that borrowers can be sure that their monthly payments will not increase unexpectedly.
Overall, Twenty7tec’s report shows that the Bank of England’s decision to raise the base rate of interest has had a significant impact on the UK mortgage market. The report found that there has been a 40% increase in remortgage searches since the announcement, with many people looking to take advantage of lower interest rates. It also found that the majority of people searching for remortgages were looking for fixed-rate deals, as these offer more security and guarantee that monthly payments will not increase unexpectedly.