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09 / 04 / 2022

Millions search for cheap mortgages as rate rises loom – 9th April 2022

Soaring house prices mean one in 20 inquiries is for a £1m+ loan.

Mortgage borrowers flooded the market in record numbers last month in a bid to get ahead of further interest rate rises.

The number of buyers and homeowners searching for a mortgage hit a record high in March, according to analysis by Twenty7Tec, a mortgage data firm. 

It recorded almost 1.6 million mortgage searches last month, 60,000 more than in the runup to the stamp duty tax break deadline in March 2021. Almost 60pc of borrowers searching for a loan were purchasers, while the remainder were remortgaging.

Both types of borrower have been keen to lock in a deal amid the cost of living crisis. Experts have predicted the Bank of England will raise interest rates again to combat soaring inflation.

The Bank of England has raised rates three times since December and lenders have wasted no time in passing the higher costs onto borrowers, with the best mortgage rates now disappearing within days of launching.

The threat of further increases has spurred borrowers to lock in fixed-rate deals while they last.

Ashley Thomas of broker Magni Finance said: “We have seen a large increase in clients looking to fix for five or 10 years, whereas historically two-year fixes were preferred. It would be prudent to lock a fixed rate as soon as possible.”

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