Mortgage broker searches plummet
Mortgage market statistics are down by more than 40% compared to four weeks ago, according to Twenty7Tec’s INSIGHT platform.
The volume of searches that brokers made in the week ending Saturday 4 April was down 44.05% on four weeks ago while the volume of documents produced fell by 41.97%. The total value of loans required dropped by 43.20%.
Purchase mortgages normally represent 55-60% of the market but they now stand at 31.58% – versus remortgages at 68.42%.
Over a four-week period, searches for purchase mortgages are down 72.24%, whereas remortgages are down 14.71%.
Buy-to-let has a long term average of 19.78% of searches with standard residential searches representing 61.25% of all searches in the past year.
However, over the past four weeks, BTL searches as a percentage of all searches has risen to 21.29%
James Tucker, CEO of mortgage technology provider Twenty7Tec, said: “The figures overall are clearly reflective of the challenges faced by the mortgage and property markets at this time.
“The daily search volumes this week are five of the six worst performing weekdays in the past four weeks, a similar story from the week before. The loan values being requested have dropped 43.20% over the past four weeks.
“There are glimmers of good news however. Buy-to-let is holding up and represents a higher percentage of the market than the long-term average (21.9% v 19.78%). Landlords may well have been buoyed by the Government’s decision not to grant rent holidays.
“The second relative piece of good news is that remortgage search volumes are still holding up. They have dropped by 14.71% in the past four weeks but compared to the drop in purchase searches (72.25%), it does show where the market has shifted to right now.”