Mortgages

Purchase activity overtakes remortgages for first time since lockdown

Purchase mortgages comprised 50.11% of all searches, compared to 49.89% for remortgage.

Rozi Jones
|
19th May 2020
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"Yesterday we reached parity. For the first time since lockdown began, searches for purchase mortgages overtook searches for remortgages."

Yesterday, purchase mortgage searches represented the majority of daily searches for the first time since lockdown began, according to figures from Twenty7Tec.

Purchase mortgages comprised 50.11% of all searches on its plaform, compared to 49.89% for remortgage.

Over the whole of last week, purchase searches represented 43.06% of all searches, up significantly from recent lows of 24.5%.

The figures show that purchase mortgage searches have almost doubled over the past four weeks – up 96.33% - but remain half of their pre-lockdown highs.

James Tucker, CEO of Twenty7Tec, commented: “Yesterday we reached parity. For the first time since lockdown began, searches for purchase mortgages overtook searches for remortgages. Over the long term, we’d expect that ratio to be 55:45. It’s a long way from the 20:80 we were experiencing at the lowest ebb just five weeks ago.

“The volumes for purchase mortgages are up 69.67% in the week to yesterday compared to the prior week. They are up 96.33% this week versus four weeks ago.

“Remortgages are, however, plateauing slightly with volumes down yesterday 0.67% compared to the Monday last week. On a weekly basis, remortgage searches are up 14.18% versus the week before.

“We’re starting to see more interest in products, including those using the Help To Buy scheme. As confidence returns to the market, it’ll be matched by increased diversity in lenders product ranges. In the figures we share with brokers and lenders every day, it’s clear to see that there’s a lot of demand by first time buyers at the 85%+ LTV range.

“Come Wednesday, we will be able to report the first full week of the Jenrick effect. We’re hoping that this demand is steady, sustainable and underpins the UK’s economic growth.”

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