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Twenty7tec reports rise in two-year fix searches

Twenty7tec is reporting that nearly half of the searches for mortgage products that were conducted using its platform over the course of last month were for fixed rate two-year deals.

New search data for September that has been issued by the company shows that 47.3% of the searches carried out by mortgage advisors during the month were for those types of products. By contrast, the figures for September of 2022 showed that just 22.5% of searches in that month were for fixed rate two-year loans, so there has been a sharp rise this year.

When looking at possible reasons for that spike, Twenty7tec has attributed it to borrowers wanting to find short-term stability while keeping their options open for the future. It added that many are expecting the market to be affected by a potential new government as well as continued mortgage rate falls.

Its director Nathan Reilly told Mortgage Solutions that:

“During September 2023, almost half of all fixed mortgage searches were for terms of two years and under as buyers looked to shorten the effects of current rates in the hope of lower rates in the medium term.”

Twenty7tec has also revealed that last month was a slower one overall for mortgage product searches than usual. These fell by 3%, which took them to their lowest level of any month in 2023 so far.

Many advisors with CeMAP training may encourage their clients to avoid longer fixed rate deals, as rates may continue to come down as inflation begins to fall.

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