Mortgage Brain’s ESIS volumes surpass pre-pandemic levels

Mortgage Brain has revealed that the volume of ESIS generated through its sourcing systems have surpassed pre-pandemic levels for the first time since COVID-19 struck in the UK.

The mortgage technology expert reported that ESIS volumes increased 1.7% last week, now leaving them 1.5% higher than the nine-week average to 16 March.

The data showed that volumes have been trending upwards since the housing market opened up on 13 May, and have been within 7% of pre-pandemic levels for the last four consecutive weeks.

Mortgage Brain suggested that demand among consumers to purchase a home continues to be strong, with residential home mover ESIS also at higher levels than those seen before the pandemic for nine straight weeks.

Mortgage Brain CEO, Mark Lofthouse, commented: “Just a few months ago it would have seemed incredible that ESIS volumes in the middle of the summer holiday season would surpass those seen in the pre-Covid world, and yet that is precisely what has happened.

“The way that the housing market, and demand from purchasers – whether owner occupiers or landlords – has bounced back during this difficult time has been testament to the resilience of the market.”

The data showed that ESIS volumes for cases at 80% to 85% LTV have significantly strengthened, at around 9% above pre-pandemic levels for six weeks in a row, and now represent 22.5% of all ESIS produced.

However, Mortgage Brain suggested that difficulties remain for borrowers with smaller deposits, with cases at above 90% LTV accounting for just 0.9% of ESIS generated – down from 6.6% pre-pandemic.

Elsewhere, the mortgage technology expert also reported that the number of product numbers fell marginally again last week, down by 0.6% on the previous week to 8,973, as lenders dip in and out of the higher LTV market.

However, product numbers remain on an upward trend, having increased by 20.8% from the COVID-19 low point that Mortgage Brain recorded in the week ending 12 April.

“While product numbers have improved significantly from their pandemic depths, they have dropped marginally for three straight weeks, highlighting the cautious approach lenders are continuing to adopt,” Lofthouse continued.

“We can only hope that as things continue to improve, more lenders return to the market to deliver products that meet the needs of those borrowers suffering from limited choice at the moment, particularly at the highest LTVs.

“Looking ahead, this looks like it is going to be an unusual summer for mortgages. Typically volumes reduce over the summer months and then pick up again in September and October but if the July trend continues fuelled by the pent up demand and stamp duty holiday it could result in high demand at the time when lender capacity is lower.”

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