Analysis of mortgage activity over July and August showed average mortgage purchase values had increased from £202,058 at the end of August 2019 to £230,768 now.
At the same time the average remortgage value had dropped 11.11%, down to £166,954, according to the data which was collated through intelligence from MCI Mortgage Club and eKeeper’s customer relationship management (CRM) system.
Looking at the year from January until the end of August, there was an average growth of 4.46% for purchase mortgages, compared to the same period last year.
However, there is also a trending decline of 3.7% for remortgage values across the year so far.
MCI Club said these figures showed just how remarkable July and August were this year – a time which would normally see values fall away because of the holiday season.
Indeed, July and August saw a return to normal service for purchase mortgages following the announcement of the stamp duty holiday and the release of pent-up demand after a slump in purchases in April and May due to the three months of lockdown.
While remortgage values were down, purchase volumes consistently crept above for the first time since the peak of remortgages in April.
Melanie Spencer, head of MCI Mortgage Club, said: “The stamp duty holiday, together with pent-up demand following the national lockdown, certainly appears to have stimulated the market and our downstream figures indicate that rising property prices are being driven by an increase in demand to move home.
“These demand factors are paired with the low cost of borrowing but a limited supply of high LTV products. We know that lending criteria is tightening so not all demand is being met, but brokers still continue to service their clients within challenging market conditions.”
The combination of data from MCI and eKeeper highlight the different trends and activity both within the mortgage market and brokers’ business.
During July and August, case activity by advisers and administrators continued to grow. Meanwhile, eKeeper’s CRM system recorded the number of diary appointments brokers made with clients wanting mortgage products. This continued to rise above historical averages by 3% in July and August.
Protection product fall
Diary appointments with brokers for protection products fell by 9% following continued growth since the beginning of lockdown, despite the risk of redundancy associated with Covid-19.
Spencer added: “Mortgage appointments provide comfort that brokers are building a pipeline of activity into the Autumn although a drop in appointments for protection emphasise the need for brokers to proactively contact their clients about this vitally important area of business.
“Appointments are a combination of new and existing customers with many appointments generated automatically within eKeeper before any deal end date.
“This comes at a time where remortgaging and low interest rates affords a prime opportunity to engage. Of course, protection is about more holistic advice outcomes for consumers, especially vital during these rocky times. Here the MCI Club can assist advisers through our qualified panel and other support services.”
