MCI Club reveals 12% rise in mortgage purchase values

The average mortgage value for purchases climbed 12.4% over July and August compared to the same period in 2019, despite the impact of COVID-19 on the market, new analysis of mortgage activity from the MCI Club has revealed.

Average mortgage purchase values have increased from £202,058 at the end of August 2019, to £230,768 as last month ended. At the same time, the average remortgage value has dropped by 11.1%, to £166,954.

From January until the end of August, the data showed an average growth of 4.5% for purchase mortgages compared to the same period last year, but a decline of 3.7% for remortgage values across the year.

MCI’s data, which also used insight from eKeeper’s customer relationship management (CRM) system, highlighted the different trends and activity both within the mortgage market and brokers’ business.

During July and August, case activity by advisers and administrators continued to grow, matching 2019’s figures and remaining steady during “holiday dips” over August, with an average of 55,000 case interactions per week. This compared to 46,700 interactions in August last year.

“The stamp duty holiday, together with pent-up demand following the national lockdown, certainly appears to have stimulated the market and our downstream figures indicate that rising property prices are being driven by an increase in demand to move home,” commented head of the MCI Club, Melanie Spencer.

“These demand factors are paired with the low cost of borrowing but a limited supply of high LTV products. We know that lending criteria is tightening so not all demand is being met, but brokers still continue to service their clients within challenging market conditions.

“Mortgage appointments provide comfort that brokers are building a pipeline of activity into the Autumn although a drop in appointments for protection emphasise the need for brokers to proactively contact their clients about this vitally important area of business.”

    Share Story:

Recent Stories


Helping landlords make their cash work harder
MoneyAge Editor, Adam Cadle, talks to Family Building Society BDMs, Arif Kara and Nathan Waller, about the resilient BTL market, the wide variety of landlords that Family Building Society caters for, and how niche products like an Offset mortgage can help improve cashflow.

An outlook on the BTL market
MoneyAge Editor, Adam Cadle, talks to Landbay senior regional account manager, Alex Witham, about current market sentiment within the BTL space and Landbay’s success in this area

Empowering advisers: A decade of education in Later Life Lending with Air Academy
Michael Griffiths is joined by chairman of Air Club and former founder and CEO of Air, Stuart Wilson, and head of the Air Academy, Daniel Holden, to look back on a decade of business focused learning at the Air Academy.


FREE E-NEWS SIGN UP

Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.