Activity expected to rise even further this month
Mortgage searches increased by 9.4% to 1.45 million in May despite having three bank holidays, according to mortgage technology provider Twenty7tec.
Purchase mortgage searches were also up 7.9%, while buy-to-let mortgage searches rose by 7.7% last month compared to April. Searches by first-time buyers were 7.7% higher in May than in the previous month.
May 2023 was also the second busiest month ever for self-employed mortgage searches, with the middle of the month seeing a peak in self-employed mortgage searches, outpacing even January’s high point.
Twenty7Tec’s Monthly Mortgage Market Report also showed that fixed product, tracker product, and stepped product searches all performed ahead of the long-term average in May 2023, but all other product types performed 10% below their long-term averages.
In terms of fixed mortgage products, two-year fixes accounted for 42.76% of all fixed product searches. A third, or 33.12%, of fixed product searches were three- to five-year fixes, while nearly a quarter, or 24.13%, were for five- to 10-year fixed mortgages.
We can today announce our mortgage market statistics for May 2023. Purchase mortgage searches were up 7.9% in April 2023 compared to April 2023. Remortgage searches were up 11.1% compared to April 2023. Buy To Let mortgage searches were up 7.7% in May 2023 compared to April 2023.… pic.twitter.com/y67PmubE33
— Twenty7tec (@twenty7tec) June 2, 2023
“The three bank holidays in May 2023 depressed what would otherwise have been a stellar month for mortgages searches and a great month for the creation of ESIS documents,” James Tucker (pictured), chief executive at Twenty7Tec, commented.
“There were 8.3% fewer products in the market than in the prior month, so increased activity was also being driven through fewer channels. Looking forwards, we expect greater activity levels around the Bank of England rate decision on June 22.”
Nathan Reilly, director at Twenty7tec, however, pointed out that despite its unusual tally of three bank holidays, May 2023 was characterised by its strong performance.
“Some of the drop in activity that we experienced in April was recovered, but we’re expecting a bank-holiday-free, pre-summer holiday June 2023 to see activity rise even further,” he said.
“Although it will be interesting to see if this front-end activity translates through to applications after last week’s economic update and the impacts this has had on interest rates. The rate decision by the Bank of England will almost certainly mean that we’ll see a rise in mortgage searches just before and just after June 22.”
Reilly added that while product numbers are largely down due to the latest inflation figures and lenders taking stock, the market is still in a far better position than post-mini budget as availability remains broadly consistent across all areas.
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, Twitter, and LinkedIn.
