"The recovery in purchase business since the reopening of the housing market in England has been striking."
ESIS levels are now just 3.2% below the nine-week average to 16th March, and have been within 11% of the pre-pandemic figures for the last six consecutive weeks. The business mix of ESIS gives a clear indication of the resurgence in purchase activity, with residential purchase ESIS representing a greater proportion of total ESIS than pre-pandemic levels for seven weeks in a row. This has been even more pronounced in the last three weeks, in which they have been around 9% higher than those seen before the effects of Covid-19 hit the UK.
There has also been a shift towards higher LTV borrowing. ESIS volumes at 80-85% LTV are now 10.9% higher than those seen earlier in the year, and now represent almost a quarter (22.9%) of all ESIS generated. However, it continues to be difficult for borrowers with the smallest deposits, with cases at 90% LTV and above representing just 0.8% of the ESIS generated, compared to the typical 6.6% level seen pre-pandemic.
Product numbers remain on an upward trend, despite dropping marginally (0.9%) last week to 9,179. They are now up by 23.6% on the low point seen in the week ending 12th April. The product total is still down by 37.5% on the nine-week average to 16th March.
Mark Lofthouse, CEO of Mortgage Brain, commented: “The recovery in purchase business since the reopening of the housing market in England has been striking. Purchase ESIS across both residential and buy-to-let cases are now higher than before the pandemic struck, a testament to the strength of that underlying demand.
“With the housing market now open in Scotland, and the Government’s decision to introduce a stamp duty holiday, we may be set to see this trend continue for some time.”
