The average mortgage value for house purchase in July and August was up 12.4 per cent compared to the same period in 2019.
The figures were revealed in the MCI Club’s latest analysis of mortgage activity, which shows purchase values up from £202,058 at the end of August 2019 to £230,768 currently.
Meanwhile, the average remortgage value has dropped 11.11 per cent, down to £166,954 in the same period.
The data from MCI Club using eKeeper’s CRM system shows an average growth of 4.46 per cent for purchase mortgages from January until the end of August, compared to the same period last year, but a trending decline of 3.7 per cent for remortgage values across the year so far .
The data highlights 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, matching 2019’s figures and remaining steady during “holiday dips” over August, with an average of 55,000 case interactions per week compared to 46,700 in August last year.
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 per cent in July and August. Surprisingly diary appointments with brokers for protection products fell by 9 per cent following continued growth since the beginning of lockdown. The fall in protection demand is all the more surprising given the risk of redundancy brought about by the Covid-19 lockdown; where one would have expected to have seen an increase in demand for income protection products.
Head MCI Mortgage Club Melanie Spencer says: “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.
“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.”
