Twenty7Tec Issues Weekly Mortgage Statistics: Week ending 11 April
Twenty7Tec, a leading provider of technology solutions to the mortgage industry, this morning issues the weekly mortgage statistics for the week ending 11 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 11 April 2020
- Searches for mortgages were down a further 27.21% on the prior week
- Searches for mortgages were down 60.23% on the same period four weeks ago
- ESIS Documents prepared were down 30.76% on the prior week
- ESIS Documents prepared were down 59.19% on the same period four weeks ago
- The value of loans requested was down 32.6% on the prior week
- The value of loans requested was down 61.4% on the same period four weeks ago
Purchase v remortgages
- Purchase mortgage searches were down 36.7% on the prior week
- Purchase mortgage searches were down 82.56% on the same period four weeks ago
- Remortgage searches were down 25.96% on the prior week
- Remortgage searches were down 32.15% on the same period four weeks ago
- Four weeks ago, purchases to remortgages split 58:42
- This week, purchases to remortgages split 26:74
Commentary by James Tucker, CEO of mortgage technology provider Twenty7Tec:
“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 stability in general will definitely help the mortgage market to return quickly.”
Kindly shared by Twenty7Tec