The volume of searches for purchase mortgages was up 2.87% on Friday and up 4.23% on the week prior, the latest data from mortgage technology provider Twenty7Tec has revealed.
For remortgage products Friday saw searched decline by 5.7% whilst the week was down by 19.33%.
The purchase to remortgage ratio for the seven days to Friday was 30:70 against a recent low of 20:80 and a long-term average of 55:45.
James Tucker, CEO of Twenty7Tec, said: “Friday’s purchase mortgage search figures showed more signs of a gentle recovery. After Thursday showed the first rise in search volumes for purchases over a month, it was good to see that Friday built on that.
“That said, it’s a complex picture. Overall volumes of searches for mortgages are considerably down on February’s highs. Until now, remortgages have been propping up activity in the market, but this week’s 19.33% drop in remortgage volumes is something that we hope to see reversed next week. Friday’s remortgage volumes were the lowest this month.
“Several factors sit behind that drop. First, this week’s industry statistics suggest that as many as one in ten homeowners has taken a mortgage holiday, so the market for remortgages has contracted slightly. It’s quite possible that people simply enjoyed the good weather over the long Easter weekend and that this upcoming week’s April showers will refocus minds on remortgages.
“The ratio of purchase to remortgage over the long term is around 55:45. At the moment, it’s 30:70 but that’s a huge leap forward from last week where it got as low as 20:80. We still have a long way to go to get back to the ‘normal’ position of higher volumes of mortgages than remortgages.
“One thing that we have seen since beginning our daily data drop to brokers and lenders is that, more than ever, lenders are able to adjust their products to market volumes and risk profiles more quickly.
“For example, the introduction of 90% LTVs combined with remote/desktop valuations into the market yesterday will be good news for the 29.3% of first time buyer searches who are looking for products in that range.
“We expect more products like this to appear as the market adjusts over coming days.”