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.”
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