Volume of mortgage searches rises 15.14% in the space of a week
The volume of searches, across purchase, remortgage and buy-to-let (BTL), rose by 15.15% in the week ending 25 April, compared to the previous week, according to research by mortgage technology provider Twenty7Tec.
It also rose by 13.94% compared with two weeks previous, but showed an overall drop of 34.36% over a four-week period.
The total volume of documents prepared during the week ending 25 April was up 19.07% and 12.91% compared to one and two weeks ago, respectively.
Compared to a month before, this is still a drop of 42.14%.
The total value of loans rose by 20.07% on a weekly basis, rose by 14.21% compared to two weeks before, and dropped by 44.14% over a four-week period.
During the week, purchase mortgages represented 31.92% of the market, up from recent lows of 24.5% but down compared to the usual figure of 55% to 60%.
Remortgages represented 68.08% of the market last week.
Search volumes for purchases rose by 26.18% compared to the week before, and 34.7% compared to four weeks previous.
The volume of purchase mortgage searches is still only at half of its pre-coronavirus levels.
BTL searches have a long-term average of 19.78% of searches, with standard residential mortgages representing 61.25% of all searches in the past year.
Currently, BTL’s share is 24.49% of all searches, whereas standard residential is 60.62%.
James Tucker, CEO of Twenty7Tec, said:
James Tucker, CEO of mortgage technology provider Twenty7Tec says: “Thankfully, there are some good news stories in this week’s figures.
“Whilst the volumes are considerably lower than the high times of late February, it is possible that we are now starting to see the ‘end of the beginning’.
“Weekly search volumes for all types of mortgages, the total number of [European Standardised Information Sheet (ESIS)] documents prepared, and the values of mortgages requested, are up compared to the same period a week ago; and, again, to the same period two weeks ago.
“The total volume of mortgage searches also seems unaffected by the announcement that lockdown will need to be in place for a further three weeks at least.
“Buy-to-let mortgage searches continue to represent an ever-larger proportion of the market – they currently constitute 24.37% of all searches, well above their long-term average of 19.78%.
“We saw a slight uptick in weekly remortgage searches also. These are up 1.03% on the prior week.
“However, the volume of remortgage searches is still down a quarter compared to four weeks ago.
“The pipeline of housing available for purchase will likely have been helped by the news from some major housebuilders that many of their sites will re-open this week.
“When I speak to brokers, it’s clear how hard they are working for their clients and trying to keep the market flowing as much as possible.
“We can but hope these green shoots of good news which have, seemingly, begun to sprout over the past two weeks will give brokers something to build on.”