Mortgage volumes impacted by bank holiday weekend: Twenty7Tec - Mortgage Strategy

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Mortgage searches and the volume of loans were down last week, having showed signs of recovery the previous week, according to the latest figures from Twenty7Tec.

The technology provider’s data for the week ending 9 May showed the volume of searches were down 7.48 per cent on the previous week and down 2.52 per cent on two weeks ago. However, the figures are said to have been impacted by the bank holiday weekend.

The volume of documents in the week last week were down 13.44 per cent on the previous week and down 12.72 per cent on two weeks ago.

Meanwhile, the total value of loans was down 13.87 per cent and 11.35 per cent on figures for the previous two weeks respectively.

The figures show purchase mortgages made up 32.45 per cent of the market compared to the 55 to 60 per cent they normally represent.

Buy-to-let mortgages made up 23.43 per cent of all searches compared to a long-term average of 19.78 per cent.

Twenty7Tec chief executive James Tucker says: “This week’s figures are all in the red after the last couple of weeks’ recovery. In terms of total search volumes, we are currently at around 44.4 per cent of pre-lockdown searches for purchase and remortgages combined.

“Remortgages, which have been propping up the market in terms of volumes, have dipped a little further and are basically flat compared to four weeks ago.

“However, this week’s figures were clearly affected by the VE Friday bank holiday. If we compare Mon-Thurs this week with the week prior then searches for purchase mortgages are actually up 8.42 per cent and searches for remortgages are up 6.96 per cent.

“The week ahead may show greater signs of whether or not the gentle recovery in our market continues.

“The housing and mortgage markets are looking for a greater clarity on exiting lockdown. The prime minister mentioned construction in his Sunday evening address to the nation, but our industry needs the detail to understand how all points along the chain in the housing and mortgage markets are expected to function.

“New builds should begin to flow through as and when construction works begin again. Sales will be mostly affected by physical viewings, which look more likely to be allowed under the new guidance. Then, in just a few short weeks, we might expect activity levels to pick up in the mortgage industry.”


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