Mortgage demand rises as market sees light at the end of the tunnel
The demand for mortgages in April was scarcely a quarter of what it was in March – but the figures show that there’s been an increase each week since Easter suggesting there’s light at the end of the lockdown tunnel.
Technology company Twenty7Tec analyses mortgage statistics and shows that for the week ending Saturday May 2;
– The volume of online searches for mortgage information was 5.36 per cent up on the previous week and 21.32 up on two weeks before;
– The total value of loans granted was up 2.93 per cent on the previous week and up 23.59 per cent on two weeks before;
– Mortgages for new purchases represented 31.74 per cent of the searches made online last week, compared to recent lows averaging 24.5 per cent;
– Searches for mortgages for buy to lets (both to purchase and to reportage) stood at 25.01 per cent of all mortgage searches.
“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” explains James Tucker, chief executive of Twenty7Tec.
“Buy to let is probably the story of the week, representing around one-fifth more of the total market than the long-term average [ but] whilst it’s great news that this week’s searches for purchase mortgages continue to rise, the volumes remain considerably down on their January to March peaks. This week’s volumes are only 26 per cent of the weekly volumes in mid-March.”
He continues: “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.