Mid-afternoon on Christmas Day is becoming an increasingly popular time for submitting a mortgage application, according to Leeds Building Society.
While many are watching the Queen’s Speech or sleeping off the effects of the big festive lunch, lots of others appear to be organising the finance on their home.
Leeds revealed, since 25 December 2016, it had seen an annual increase in the number of people submitting applications on this day.
Its analysis showed savers tended to log on to their accounts early in the morning, most likely to deposit cash gifts or to transfer money to cover the Christmas spent.
Meanwhile, mortgage traffic on Leeds’ website, tends to kick off around mid-afternoon. The data revealed there was generally a lull later in the afternoon, and then things picked up again around 9pm.
Boxing Day ‘bounce’
Leeds isn’t the only organisation which has noticed a festive spike in activity. Indeed, property website Rightmove claims Boxing Day is one if the busiest for home searches, with three times the number of page views than on a typical day.
But while it might seem unusual so many were people are carrying out ordinary activities amid the festivities, Leeds had a theory to explain the trend.
Matt Bartle, director of products at Leeds Building Society, said: “We were a little surprised that more and more applicants now log in on Christmas Day to start their mortgage process.
“Maybe, after all the build-up to the big day, this is the first free time they have to themselves, or perhaps they’re wanting to try out some new tech they received as a gift.”
Take advantage of low rates
If you are considering doing your mortgage application – whether it’s a new mortgage or a remortgage – this Christmas, it could be the ideal time.
For, according to mortgage analysts at Moneyfacts.co.uk, rates are currently at the lowest point they have been all year.
2019 has been a competitive year for mortgage lenders, who have been slashing interest rates on fixed deals in a bid to attract business.
Rachel Springall, a finance expert at Moneyfacts, explained deals where customers can fix their mortgage rate for the longest terms have seen the most dramatic price changes with 10-year fixed-rate mortgages averaging at 2.77% compared to 3.08% this time last year.
Springall added: “Borrowers may well be searching for a longer-term fixed rate mortgage during a period of economic uncertainty, so the rate cuts will be welcomed. A five-year or 10-year fixed mortgage can provide a bit of certainty with mortgage repayments at the very least, even if the outlook for 2020 and beyond is uncertain.
“We even had the first 15-year fixed mortgage launched in 10 years in 2019, showing clear signs that lenders are tailoring their ranges to accommodate borrowers looking for a bit of security.”
Looking forward, Springall said it was unclear whether this battle of rates could continue into 2020. What’s more she advised anyone considering taking out a mortgage to look at all the elements of a mortgage – not just the interest rates and, if in doubt, seek financial advice.
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It’s good to see that people are getting their mortgages sorted early rather than leaving things until in to the new year.