Searches for brokers fell 4.8% on mortgage platform Twenty7tec in August from the previous month, with the number of available home loans falling to its lowest level since July last year.
The fintech company says there were 1.4 million buy and remortgage searches on its platform last month, a traditionally quieter time for the industry that includes summer holidays, according to its August monthly mortgage report. This follows a 4.7% increase in searches in July.
However, data shows that late August saw an 11.52% drop to 13,616 products available, the lowest level since July 2021.
He adds that the products are now at 67.48% of the market high in February 2020, although availability is still 74.9% higher than the minimum during the pandemic.
Megha Srivastava, National Account Manager at Twenty7tec, says: “We now have fewer mortgage products available in the market than at any time since July 23, 2021. Fewer products and similar volumes put more pressure on the remaining products and product teams.
Group Lender Relations Director Nathan Reilly adds: “The removal of certain products has resulted in an increase in the average maximum loan value to value. Products in the 85% and above range now represent a larger percentage of the market than they did for some time. »
The report highlights that August 4 was the platform’s busiest day for mortgage searches, as homeowners travel to secure new loans amid rising interest rates. He adds that eight of the 31 days last month saw searches for mortgages outpace searches for purchase loans.
However, monthly searches for mortgages remained flat at 641,004, while searches for purchases fell 8.4% to 775,120.
Last month, first-time buyers also accounted for 18.2% of searches, the lowest proportion of first-time buyers in the market this year.
August also saw searches for homes valued at over £1million fall 3% to 57,866 month-on-month, the only range of properties to fall.
Twenty7tec Founder and Managing Director James Tucker says: “The end of August was one of the busiest months we have ever seen. The second half was definitely affected by the summer holidays and the bank holiday weekend.
“Away from the headlines, however, this is a very nuanced market. Mortgages and BTL activity were high, but searches for FTB, buy-to-let and £1m+ properties were all down.
“The main story of the month has to be product availability, including a 26% drop in products with a peak LTV of 60% – a key part of the BTL market and a move that surely drove some of the business additional research.
“Normally we’d expect a back-to-school vibe this week, with the 14 weeks from early September to Christmas Eve being the busiest of the year. But if I’ve learned anything from the past two years, is that it is easier to comment on what has happened than what is to come.