Not only were overall ESIS numbers at a record high, but the number of ESIS generated per working day were also at the highest level seen thus far this year. ESIS numbers have recovered strongly since the onset of the pandemic, with ESIS totals materially higher than pre-pandemic levels for ten straight weeks. The difference is pronounced too, with numbers now consistently over 10% higher than those seen before Covid-19 hit.
The ESIS growth continues to be driven by those purchasing a property. Residential purchase ESIS have represented a higher proportion of ESIS generated than before the pandemic for 17 consecutive weeks, and markedly up by around 10% for the last 14 weeks. This is replicated in the buy-to-let market, as purchase business has continued its steady growth, now accounting for 12% more of the total buy-to-let ESIS generated than before Covid-19.
Mark Lofthouse, CEO of Mortgage Brain, commented:
“September has been a bustling month for the mortgage market, with demand from buyers driving ever-increasing ESIS volumes. Lockdown has clearly caused many people to evaluate whether they are really happy with their current home, while the Stamp Duty holiday has made the prospect of purchasing a new property ‒ for owner occupiers and landlords alike ‒ more appealing financially.”
“However, the strength of this demand is still not feeding through into product numbers and higher LTVs. While they have rebounded since the onset of the pandemic, the total number of products available remains mired around 8,500, which is substantially down on what we saw before Covid-19 took hold. There is still plenty of room for improvement here, particularly at higher LTVs.”
