3 May 2020
Twenty7Tec Issues Daily Mortgage Stats:
Release for week ending 2 May 2020; and
Release for month of April 2020
Twenty7Tec, a leading provider of technology solutions to the mortgage industry, this morning issues the mortgage market statistics for week ending Saturday 25 April. Using the company’s INSIGHT platform, it will be providing free daily market analysis reports during the Covid-19 crisis.
Stats from the mortgage market from week ending 2 May 2020
Weekly total figures
The volume of searches in week ending Saturday 2 May was
- Up 5.36% on the previous week
- up 21.32% on two weeks ago
- down 12.6% on four weeks ago
The volume of documents in week ending Saturday 2 May was
- up 0.84% on the previous week
- up 20.06% on two weeks ago
- down 21.17% on four weeks ago
The total value of loans in week ending Saturday 2 May was
- up 2.93% on the previous week
- up 23.59% on two weeks ago
- down 20.77% on four weeks ago
Purchase v remortgages
- Purchase mortgages normally represent 55-60% of the market. This week, they represent 31.74% (versus remortgages at 68.26%), up from recent lows of 24.5%.
- The searches for purchase volumes were up 11.80% this week on one week before and up 41.07% on two weeks ago.
- Searches for purchase mortgages are still only around 26% of pre-Covid-19 levels
- Searches for remortgages are up 2.62% on the prior week and up 13.9%, although volumes remain around 20% lower than peak volumes earlier in the year.
BTL v purchase
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
Currently, BTL’s share of all searches is at 25.01%, whereas standard residential is at 59.66%.
Stats from the mortgage market for April 2020 versus March 2020
Monthly figures for April 2020
The total volume of searches for April was down 49.1% on March
The total volume of documents prepared was down 50.8% on March
The value of mortgages was down 52.5% on March
Buy to let search volumes were down 37.82% on March
Remortgage search volumes were down 23.5% on March
First time buyer search volumes were down 77.27% on March
James Tucker, CEO of mortgage technology provider Twenty7Tec says:
“The data tells us that we are gently on the up again and have been ever since Easter. Across the board, we are seeing higher search volumes, higher levels of documentation prepared and higher total levels of loans requested.
“Buy to let is probably the story of the week, representing around one-fifth more of the total market than the long term average.
“Whilst it’s great news that this week’s searches for purchase mortgages continue to rise, the volumes remain considerably down on their Jan-March peaks. This week’s volumes are only 26% of the weekly volumes in mid-March.
“Across mortgages search, documents prepared and total mortgages values, April’s figures are almost exactly half of March’s. April was going to be a challenging month for the mortgage industry: Households were in lockdown, building sites were closed, and vast tracts of people were being put on furlough.
“Equally, in comparing April to March, it’s worth noting that April had two Easter bank holidays and that March was a day longer, but also that the volume of mortgage products on the market was considerably lower than the month prior.
“Despite the difficult conditions, lenders quickly moved to address the changes in the market conditions and amended, updated and replaced their products at an unprecedented rate. Brokers responded well and were able to focus in on those areas of our industry where volumes remained higher.
“What’s clear from the figures is that remortgages have held up remarkably well – down just 23.5% in April versus March. The volumes of searches for first time buyer mortgages was down 77.27% on March, whilst buy to let search volumes were down just over one-third month on month.
“Looking back, it is hard to believe that just ten days before lockdown, we were having our busiest week of the year for mortgage searches. Our sense is that the work between the industry and Government to provide a three month payment holiday scheme has definitely gone a long way to shoring up confidence in a deeply affected industry. These figures would likely have been a lot worse had it not been for those efforts. The latest figures tell us that around one in seven UK households has now used a mortgage holiday.
“The lowest point for our market was around the Easter period. We’ve seen gentle uplifts since then with purchase searches forming an increasing proportion of total searches, one sign that things are heading north once more. The shape of April’s result is a U curve with a low point around Easter. We hope that we continue to see rises over coming days and weeks and that May further recovery.”
Twenty7Tec is a market leader in the provision of online mortgage, secured loan and bridging sourcing systems, with over 13,000 individual intermediary subscribers, including some of the largest Network and Directly Authorised firms in the UK. Twenty7Tec Group also specialises in the build, delivery and maintenance of unique technology solutions designed to drive efficiency in process in today’s lending market. The company today supports some of the largest aggregator, intermediary and lender organisations in the UK, with a diverse array of technology systems that meet the needs of the evolving mortgage market.