Search for mortgage purchases reaches lowest proportion since May 2020: Twenty7Tec
“The buying market is not as strong as expected, and re-mortgages seem to be the order of the day.”
Purchase mortgage research volumes are at their lowest share of the market since May 2020, according to the latest data from Twenty7Tec.
Searches for mortgage products in the 95% LTV range also declined in October and are now half the volume when the guarantee scheme was introduced.
Nine of the ten busiest days in 2021 to remortgage the ESIS documents were in October, and Twenty7Tec says the remortgage ESIS documents nearly exceeded the purchase documents over the past week.
October also saw the busiest six days for mortgage research when one of the applicants was retired.
Alongside remortgages, the buy-to-let recorded its second best month of 2021 after March.
James Tucker, Founder of Twenty7Tec, said: “The market is changing, and fast. We should be in the midst of a home buying boom right now, as we traditionally are in the 11 weeks leading up to Christmas. Instead, the buying market is not as firm as expected, and remortgages seem to be the order of the day.
“With a decline in first-time buyers’ activity and a lower proportion of searches entering the 95% to 100% LTV range, we believe the pre-Christmas mortgage market is slowing down a bit.
“Hire purchase remains strong, with five of the eight busiest days this year, all in October 2021. Hire purchase is taking over for first-time buyers. “