A quick note on the methodology and terminology that we use in our monthly demand and supply report.
At the end of each month, we analyse the Twenty7Tec data for themes and trends in the mortgage market. We have access to broker, intermediary and lender product behaviours on an hourly, daily, weekly and monthly basis.
The report is called demand and supply in the market because Twenty7Tec processes market demand – broker queries – and supply – lender products.
When we refer to demand, we use ‘search’ as a proxy for demand levels. It’s not a perfect measure, but it’s as good a signal as possible for our market. The number of searches per customer varies a little and can rise and fall with other market trends, but it is the best available statistic for demand at our point in the home buying chain.
When we refer to supply, it’s the lender’s products.
When we refer to the point where demand meets supply, well, that’s where we use ESIS documentation as a signal. The buyer has intent (a valid mortgage search) and it has intersected with an available product, so an ESIS document can be produced.
Of course, a certain percentage of these documents will not go on to become signed up mortgages. But for the part of the market that we handle – the brining together of demand and supply – these two metrics tell us a lot about the health of our market.
In terms of the research, we: analyse the datapoints in the Twenty7Tec systems; and
We ask the opinions of several market leaders on the themes were spotting each month.
Please don’t hesitate to let us know if you have any questions.