Demand for mortgages has returned to pre-lockdown levels with enquiries for May showing a 57% rise from April, new analysis from Experian has revealed.
 
As the UK lockdown meant the housing market was largely on hold in March, Experian suggested that mortgage enquiries fell by 17% during the month compared to February. This downward trajectory continued into April as mortgage enquiries fell by another 17% from March, to record the lowest levels of mortgage activity so far this year.
 
However, the analysis indicated that remortgage activity has remained constant during the restricted period, accounting for 16% of all mortgage enquiries in the first six weeks of lockdown from 23 March. Experian said that remortgage product rates continued to remain competitive following the base rate cut to 0.1%, offering homeowners an opportunity to bring down monthly expenses.
 
Given the economic impact of the pandemic, Experian also indicated that lenders have reviewed their acceptance criteria and product ranges over the past few months, with the analysis finding that mortgage product availability falling by 39% in March from February.

Experian Marketplace managing director, Amir Goshtai, commented: “We have seen mortgage enquiries soar since the easing of lockdown restrictions and the reopening of the housing market. What we’re seeing is a ‘double release’ of pent-up demand from political uncertainty last year and lockdown this year.

“The lockdown has got many people reflecting about their lives – their daily commute, working arrangements and home environment – and so people are now looking to see what is available on the market and what they can afford that better matches what’s important to them.
 
“As people resume looking for their home, they should explore their mortgage options fully. While mortgage product availability is not quite back to pre-lockdown levels, we are slowly seeing lenders reintroduce products back to market.”

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