Remortgage queries hit record high and purchase enquiries soar.
Following an increase in loan rates to a 15-year high, remortgage searches reached record highs last month, while buy inquiries rose to their second busiest month ever on the Twenty7tec platform.
In June, broker searches for customers looking for new mortgage deals increased 21.9% to 825,736 inquiries over the previous month, making this category’s highest monthly level ever.
The number of purchase searches increased by 0.6% to 1,747,323 last month, making it the second busiest month ever for these inquiries on the platform. March had the most inquiries for this form of mortgage, at 1,852,718.
The information comes after the Bank of England raised the base rate by 50 basis points to 5% last month. This was the bank’s 13th consecutive rate increase since December 2021, and it brought the rate to its highest level in 15 years.
According to the search engine, interest in buy-to-let mortgages increased 11.1% in June 2023 compared to the previous month.
According to the report, first-time buyer searches increased by 1% last month but fell as a percentage of all searches to 16.5%, which is the lowest level since last September and the lowest level in more than three years.
In contrast to just 21.4% a year ago, 42.6% of all fixed-rate product searches last month were for two-year fixed mortgages.
33.7% of all fixed product searches now involve three- to five-year fixed-rate agreements, down from 41% last year.
In contrast, five- to ten-year fixed-rate mortgages currently make up 23.7% of all mortgages, down from 36.1% a year earlier.
At the end of June, there were 13,449 products available on the website, which is the fewest so far this year.
Director of Twenty7tec Nathan Reilly states: “The Bank of England increased rates further in June 2023. The week before the rise and the week after, when thousands of product adjustments were made, were both extremely busy since the market appeared to have priced it in ahead of time.
It’s important to note that the 24th of June 2023 marked the first day without any green mortgage searches in the 18 months since we started reporting on them.