July’s mortgage market activity labelled ‘astonishing’

Throughout July the number of mortgage searches for loans of over £500,000 increased, as buy-to-let demand dropped off towards month end.

The news comes from the latest monthly report from mortgage technology provider Twenty7Tech, which described the market recovery recorded during July as ‘astonishing’.

Data released revealed that there were three times as many broker searches for purchase mortgages throughout July than in May.

It found that the biggest increase was in the £500,000 to £1 million region, indicating a rise driven by the stamp duty tax changes announced last month.

An increase in first-time buyer queries was also recorded, with searches rising from 13% in the month of May to 19% in July. The report revealed that searches were frequently hitting 10,000 per day, with the busiest days recorded throughout July.

However, the report also sparked some concern over buy-to-let, as the seven day rolling average for relevant searches fell to levels seen at the beginning of the month.

James Tucker, CEO of Twenty7Tec indicated that this data could have been a ‘blip’ as a result of the prime ministers tightening of lockdown restrictions nationwide. However, he did mention that it would be interesting to watch what unfolds over the next few days as it could also be a pre-cursor to what we might expect throughout the upcoming months.

Twenty7Tec’s report also revealed that despite the increasing demand, product availability dropped off slightly in July compared to June.

At the maximum loan-to-value points of 70% and 75% Twenty7Tec recorded product volumes fall by 14% and 10% respectively.

Discussing the report in general, Tucker added: “July has been the busiest month of 2020 for mortgage searches.

“This is not a sentence that I was expecting to write less than a month ago. For our business, and indeed for our customers, the speed of the recovery of activity in the mortgage market has been truly astonishing.

“This is not a time to be complacent however – the positive momentum that we have all found both in business volumes and in the speed of technological change should not be lost.”

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