"The major story of the month has to be product availability, including a 26% drop in products with max LTV of 60%"
The data show that mortgage search activity was up 21.49% compared to August last year - and was the second busiest month ever for ESIS documents, with August 4th the highest ever day for ESIS documents produced.
Green products saw a spike in searches, too, with the ten busiest days ever for green buy-to-let mortgages all seen this month.
However, August saw an 11.52% drop in products available - the lowest product availability since mid-July 2021 - meaning product numbers are now approximately two-thirds (67.48%) of the market high in February 2020.
However, the drop in product availability is not equal: fixed-rate mortgages are still at 85.83% of their all-time highest volumes, and stepped mortgages are at 56.9% of their all-time highest volumes. But all other formats (discount, tracker, capped, variable, and the LIBOR replacement Sonia) are all below 50% of their all-time highest volumes.
James Tucker, founder and CEO of Twenty7Tec said of the findings:
“The front end of August was among the busiest of months we’ve ever seen. The latter half was definitely affected by the summer holidays and by the bank holiday weekend.
“Away from the headline figures, however, it’s a very nuanced market. Remortgages and Buy To Let activity were high, but first time buyer, purchase and £1m+ property searches were all down.
“The major story of the month has to be product availability, including a 26% drop in products with max LTV of 60% - a key component of the buy to let market and a move that surely drove some of the extra search activity.
“Normally, we’d be expecting a back-to-school vibe this week, with the 14 weeks from the beginning of September to the run-up to Christmas being the busiest of the year. But if I have learned anything from the past couple of years, it’s that it’s easier to comment on what has come than what is to come. Either way, we’ll be here to support you in advising your customers on getting the best possible deal in a rapidly changing market.”
