Mortgage holders waiting for June base rate cut

Online remortgage searches dropped by 10% in June, indicating that many are waiting for an expected base rate cut.

That is according to tech firm Twenty7tec, which found that searches dropped by 71,080 last month.

The Bank base rate was previously held at 4.25% in May, with the next meeting taking place on 19th July.

Economists widely expect a 0.25% base rate cut, as inflationary pressures in the form of wage inflation and energy prices are cooling.

Cutting the base rate is seen as a key factor that could prompt economic growth.

Nathan Reilly, director at Twenty7tec. “Despite the recent Bank of England announcement that interest rates would be held rather than raised, we are witnessing a quiet yet growing confidence that rates will continue to fall this year.

“We’ve seen months of high remortgage activity, but now people are holding back. There’s undoubtedly a significant portion waiting to commit – potentially influenced by increasing media coverage, with predicted autumn rate cuts encouraging a ‘wait and see’ approach.”

Overall, June saw 1.73 million mortgage searches, up 11.75% from June last year but down 7.78% from May.