Purchase Mortgage Searches Fall 82%
Purchase mortgage searches have fallen by 82 per cent over the past four weeks.
According to weekly mortgage data provided by Twenty7Tec, up to the week ending April 11 purchase mortgage searches had also reduced by a third on the week previous.
Searches for mortgages were down 27.21 per cent on a weekly basis and 60.23 per cent lower than a month ago.
ESIS documents prepared had fallen by 30.76 per cent and 59.19 per cent on a weekly and fortnightly basis respectively. Over the past month, the value of the loans received has also plummeted by 61.4 per cent.
The remortgage market appears more resilient in the current lockdown with remortgage searches only falling by 32.15 per cent and the purchase to remortgage split changing from 58:42 four weeks ago to 26:74 in the present climate.
James Tucker, CEO of mortgage technology provider Twenty7Tec says:
“We appear to now be facing the worst of the epidemic in the UK and are likely to see continued downward pressure for several weeks in our and many other markets and industries. The mortgage industry needs to adapt accordingly.
“In normal times, further up the line, we’d expect Easter viewings to turn into mortgage searches and then applications with a slight time lag. But in lockdown, with almost no new viewings, new build sites increasingly closed to construction, there’s a contraction further up the line that will have an effect on what mortgages are being applied for in due course.
“Although purchase search volumes are now around one-fifth of their volume four weeks ago, it’s possible that remortgages are the bigger news story this week as remortgage volumes had previously dropped only by around one-sixth from their peak in mid-February. This week’s 26% decline in remortgage volumes may point to a broader market perception that we have not yet reached the bottom of that market yet. That said, we do expect greater demand for remortgages over coming weeks as we see lockdowns begin to be lifted and confidence begin to creep back into the markets.
“Brokers are still working as closely as possible with those clients who are looking to invest in or refinance their properties. Mortgages are still being written and we have seen some specialist lenders rejoin the market over recent days.
“Our sense is that the next milestones will be around when lockdown is going to be lifted, and what will happen at the end of furlough at the end of May. Lenders are likely to have priced in these elements already, but greater clarity on the latter and on household’s financial