Mortgage activity spikes on the days the Bank of England announces its interest rate decisions, according to research by technology provider Twenty7tec.
The company’s data revealed that these decision days were consistently busier for mortgage advisers and homebuyers compared to the average Thursday.
In raw terms, mortgage search activity on interest rate decision days was 5.23% higher than the average Thursday.
Comparisons to subsequent Thursdays also highlighted a notable increase, with activity typically 5.59% higher than the Thursday immediately following the decision and 9.94% higher than two Thursdays later.
Nathan Reilly, director at Twenty7tec, said: “Interest rate decision days are busier than usual for advisers.
“We see an uplift on the day itself compared to the two Thursdays prior to the decision and the two subsequent Thursdays.
“On average, decision day is around 5% busier than the Thursday before and the one after the decision.”
Reilly attributed this heightened activity to a desire for clarity among homebuyers and landlords, who want to understand how the Bank of England’s Monetary Policy Committee (MPC) decisions affect mortgage products.
He added: “Homebuyers and landlords love clarity.
“When they know the outcomes of the MPC, buyers want to know as soon as possible how it has affected products in the market.
“That’s why we work so quickly to get all the lenders’ rates adjusted to the new normal.
“It takes a day or so for the lenders to reposition their products, so by the Monday after the decision, it’s business as usual.”
