Search data points to early activity and a modest shift towards rate‑linked products
Mortgage borrowers appear to have moved in advance of the Bank of England’s December base rate decision, with search data indicating a peak in activity more than a week before the cut and a small rise in interest in products that track future rate movements.
Figures from mortgage technology provider Twenty7tec show that mortgage searches reached their highest point of the month on Dec. 9, with 69,462 searches recorded. That surge came nine days before the Monetary Policy Committee reduced Bank Rate to 3.75% on Dec. 18. On decision day, searches totalled 54,847 – lower than the earlier spike, but still 12.7% higher than on the same day a year earlier.
The pattern suggests many borrowers were reacting to sustained commentary on a likely reduction in Bank Rate and chose to progress applications before the announcement rather than wait for formal confirmation.
Activity among residential borrowers was stronger than a year earlier. Standard owner‑occupier searches on Dec. 18 rose 15.1% year on year to 41,803. Buy‑to‑let searches also increased, up 7.1% compared with the same date in December last year.
The data also points to a modest adjustment in risk appetite on the day of the decision. Fixed‑rate products remained the main choice, accounting for 50.8% of searches across December to date. However, their share eased to 49.9% on Dec. 18. In contrast, searches for tracker mortgages rose from 8.6% of month‑to‑date activity to 9.1% on the day of the announcement, a relative increase of just over 6%.
Other rate types that could benefit more quickly from further cuts in Bank Rate – including discount, variable and SONIA‑linked products – also saw a higher share of searches on Dec. 18. Taken together, the figures indicate a small but notable segment of borrowers opting to stay closer to future market moves rather than locking in current fixed pricing.
Nakita Moss (pictured right), head of product at Twenty7tec, noted that the pattern was consistent with earlier rate announcements. “Borrowers tend to move early as expectations build, activity eases slightly on the day itself, and there is usually a noticeable uptick on the Monday that follows as people pick conversations back up,” she said. “With this decision falling so close to Christmas, that post-decision bounce may not fully materialise until January.”
“For advisers, that means December activity should not be read as a slowdown in demand. Many borrowers have already done the groundwork, and those conversations are likely to reappear quickly once the new year begins. Advisers who stay proactive, follow up early in January, and are ready to talk through both fixed and tracker options will be best placed to convert that pent-up demand.”
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