"Volumes dropped slightly in July 2021 as minds turned from stamp duty holidays to summer holidays and the Euros."
Its figures show that there were 13,974 mortgage products available at the end of July.
The data also shows that mortgage volumes began to drop slightly in July, as the stamp duty holiday began to wind down, with first-time buyer search volumes falling by 7.8% compared to June.
Mortgage searches in the £150,000 - £250,000 valuation bracket also fell by 4.9%, despite the ongoing stamp duty relief in this price range.
Conversely, Twenty7Tec recorded a 9.7% increase in remortgage volumes.
James Tucker, CEO of Twenty7Tec, commented: “Finally, a much-needed pause for all those working in the market. Volumes dropped slightly in July 2021 as minds turned from stamp duty holidays to summer holidays and the Euros. The market also appears ready to go again in September - with new products, improved rates, and innovation flooding into the market.”
Twenty7Tec's Nathan Reilly added: "We are rapidly closing in on 14,000 mortgage products available in the market. That's still at only 70% of products available in February and March 2020, but it's a huge leap forward from the lows of April and May 2020, when under 10,000 products were on the market. It's a sign of confidence in the market.
"I think that we'll see more product innovation over coming months. Until just recently, lenders were predominantly focused on steadying the ship and now they are turning their minds to differentiation and innovation, particularly when rates are so competitive. Among other lender innovations we're seeing, one trend is the introduction of more eco mortgages and it’s likely these will only increase in popularity over the coming months.
"There’s been some positive movements from specialist lenders in recent weeks, with the introduction of more high-LTV mortgages and the general expansion of product ranges, which is a really encouraging sign for the entire market. This feeling of confidence has also been increased by the introduction of some sub 1% mortgages that been launched in recent times.
"There seem to be fewer nerves around the state of the employment market – although the end of October will see two million people move off furlough, so it's possible that that will affect things a little.
"I think it's fair to assume that lenders have been busy adapting their underwriting to address the changed market conditions. Performance-based roles like airlines pilots (hours flown) and landlords (pub revenues) have seen their livelihoods affected by the downturn and their ability to get a mortgage may well have changed as a result. More broadly, it's fair to assume that for many people who can now work at work and no longer pay to commute, that what they can afford had improved as a result."
