In its latest report into market supply and demand, Twenty7Tec has stated that there was a rise of close to 60% in the number of searches that people undertook for mortgage loans last month.
This report indicates that the mortgage search numbers for January went up by 59.2%, with the total for the month being 1,211,052. Furthermore, the report also shows that there was a consistent increase in search numbers across different parts of the mortgage market, with remortgage search numbers going up by 64% and purchase loan searches rising by 56.7% over the month.
The data from Twenty7Tec indicates a spike in the number of first-time homebuyers entering the market at the start of this year, with these making up over 20% of all mortgage searches that took place during January.
The report also suggests that delays to the building of new homes caused by the pandemic have led to a shortage of housing supply, and that this was a major factor in the increased number of searches last month.
Twenty7Tec Chief Executive James Tucker told Mortgage Introducer that the number of searches was very unusual for this time of year, before adding:
“Who knows if these volumes will sustain and at the time of writing, there’s still no absolute clarity on the stamp duty relief. Buyers seem to have priced that in, however.”
Those within the mortgage sector will have anticipated a frantic start to the year, but advisors will need to use their CeMAP training to help their clients find loans when housing supply is low.
