November 26, 2020
Twenty7Tec releases mortgage figures after third week of national lockdown 2.0
Twenty7Tec, a leading mortgage technology platform has released figures on the state of the mortgage market after the third week of national lockdown 2.0.
Weekly mortgage search volumes are currently at 83.89% of the year’s highest figure, down 3.9% on the week before
Weekly Buy To Let mortgage search volumes are at 94.45% of the year’s high, up 0.3% on the week before
Weekly residential mortgage search volumes are at 81.48% of the year’s high, down 5.2% on the week before
Weekly mortgage ESIS documentation figures are currently at 90.27% of the year’s highest figure, up 1.5% on the week before
Weekly BTL mortgage ESIS documentation figures are currently at 95.25% of the year’s highest figure, up 6.7% on the week before
Weekly residential mortgage ESIS documentation figures are currently at 87.25% of the year’s highest figure, up 0.03% on the week before
James Tucker, CEO of Twenty7Tec, says:
“Overall this week, we’re down on search volumes and up on documentation volumes. Buy To Let in particular has had a stronger week and now accounts for 20.66% of all searches and 22.43% of all documentation. Tuesday 24 November was the year’s third highest day for Buy To Let ESIS documents.
“The search for residential mortgages has definitely slowed a little this week, dragging the total volume of searches lower to 83.89% of the year’s 7-day high. There’s been some uncertainty in households as to what is going to happen at the end of this second period of lockdown. In terms of total residential mortgage searches, we are now at exactly the same level as we were the day we entered the first national lockdown, March 23rd. Time and again this year, we’ve see uncertainty over lockdown lead to search volumes dropping. We anticipate, however, that as soon as there’s greater certainty, that the volumes will return to some extent. Another downward pressure is, of course, the end of the stamp duty period. Search volumes today are affected by completions not being possible by financial year end. Unemployment and the economic forecast have also provided some downward pressure on volumes.
“In terms of the documents produced, however, the picture is slightly brighter, with overall volumes over 90% of the best 7-day period year to date. Given that we’re in this slight information limbo period, that’s a pretty good result. Buy To Let had had a strong week and is within 5% of the year’s busiest week as of today. It’s possible that the BTL market will continue to be busy for stamp duty holiday purchases for a few days yet given that buyers are quicker to process for lenders.
“Normally, we would expect this time of year to be being pushed higher in the traditional ten-week busy period running up to Christmas. This year is, inevitably, different and so we’ll have to see if there’s greater certainty after the Prime Minister has declared today which areas are in which tiers of lockdown. We’d anticipate that there’d be a slight dip in volumes for those areas in the highest restrictions, matched by a bounce back a few days later.”