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: “With total searches this week down only 1.04% on the prior week, it’s possible that we are nearing or have even already hit the bottom of the market for residential purchase mortgages.
“On Thursday, we saw the first rises in searches for purchases over a month.
Then on both Friday and Saturday, we also saw rises in searches.
“The volume of searches for Thursday, Friday and Saturday combined is up 60% on the same three days from the previous week and almost matches the activity levels from the same days two weeks ago.
“Whilst we don’t want to get ahead of ourselves, it’s good to have some figures in the green after a sea of red over recent weeks.
“Elsewhere in the market, buy-to-let mortgage searches represent an ever-bigger proportion of the market[…].
“Remortgage volumes, however, have dipped 3.7% this week compared to the prior week.
“That’s possibly due to the Easter weekend weather being so good, but it could be a side effect of the mortgage payments holiday scheme.
“The scheme is believed to be being used by one in 10 homeowners, which will clearly contract the market for remortgages.
“Additionally, the average property values for those searches taking place has risen 10% since the beginning of March to £369,967.
“Around 20% of searches are for properties valued at £500,000 and more.
“The extension of the lockdown until at least 7 May will mean greater pent up demand.
“If we think about our busiest periods of the year, they normally follow the times when we spend most time at home.
“Easter, Christmas and the school summer holidays all give rise to significant market activity.
“Our sense is that after being in lockdown for six or so weeks, that that effect will only be amplified.”
“In the meantime, I know that brokers need to do what they do best: speak to their clients, find them the best solutions and help them to achieve their goals.”
