Leading mortgage technology provider, Twenty7Tec, has released its monthly mortgage market data for July 2021.

Key findings in July include:

• 63.6%* Purchases as a proportion of the mortgage market in July 2021 (remortgages = 36.4%). *Excluding product transfers.
• 7.2% Growth in products available as of July 31, 2021, versus products available as of June 30, 2021.
• 9.7% Increase in July 2021 remortgage volumes compared to May 2021.
• -7.8% First time buyer search volumes in July 2021 versus June 2021.
• 19.5% First time buyers as a percentage of all mortgage searches in July 2021.
• -4.9% Change in July mortgage searches in the £150k - £250k valuation bracket versus June 2021 (despite the ongoing stamp duty relief in this price range).
• 3.75 The long-term average mortgage searches per ESIS document produced.
• 13,974 Mortgage products available at the end of July 2021.

James Tucker, CEO of Twenty7Tec, commented:

“Finally, a much-needed pause for all those working in the market. Volumes dropped slightly in July 2021 as minds turned from stamp duty holidays to summer holidays and the Euros. The market also appears ready to go again in September - with new products, improved rates, and innovation flooding into the market.”

Additional interesting market commentary:

Products available and innovation

Nathan Reilly, Twenty7Tec says:

"We are rapidly closing in on 14,000 mortgage products available in the market. That's still at only 70% of products available in February and March 2020, but it's a huge leap forward from the lows of April and May 2020, when under 10,000 products were on the market. It's a sign of confidence in the market.

"I think that we'll see more product innovation over coming months. Until just recently, lenders were predominantly focused on steadying the ship and now they are turning their minds to differentiation and innovation, particularly when rates are so competitive. Among other lender innovations we're seeing, one trend is the introduction of more eco mortgages and it’s likely these will only increase in popularity over the coming months."

Improved confidence

Nathan Reilly, Twenty7Tec says:

"There’s been some positive movements from specialist lenders in recent weeks, with the introduction of more high-LTV mortgages and the general expansion of product ranges, which is a really encouraging sign for the entire market. This feeling of confidence has also been increased by the introduction of some sub 1% mortgages that been launched in recent times.

"There seem to be fewer nerves around the state of the employment market – although the end of October will see two million people move off furlough, so it's possible that that will affect things a little.

"I think it's fair to assume that lenders have been busy adapting their underwriting to address the changed market conditions. Performance-based roles like airlines pilots (hours flown) and landlords (pub revenues) have seen their livelihoods affected by the downturn and their ability to get a mortgage may well have changed as a result. More broadly, it's fair to assume that for many people who can now work at work and no longer pay to commute, that what they can afford had improved as a result."

Phil Bailey, Director at Twenty7Tec says:

"We should note the complete absence of the cliff edge when the main stamp duty relief ended. One of the most pleasing elements for me was quite how quickly things have returned to seasonal norms in the mortgage world. That means that the Chancellor looks to have judged the soft landing just right after 18 months of fluctuations.

"The return to seasonal trends is a good thing for our industry. It means that brokers and intermediaries can finally take a break.”

The October market

Nathan Reilly, Twenty7Tec says:

"Lots of landlords are reviewing their portfolios at the moment and considering the benefits of the stamp duty tapering and competitive rates that are on offer. It’s likely the buy to let market will remain strong from both a purchase and remortgage perspective, which presents a big opportunity to intermediaries.

A fully functioning market

Phil Bailey, Director at Twenty7Tec says:

"First time FTB searches have dropped 20% since Feb 2021 and are at their lowest levels since November 2020. To have a fully functioning housing and mortgage market, we need both significant buy to let and first time buyer activity. Buy To Let is increasingly important for the lower valuation end of the market as first-time buyer interest shrinks slightly."

Higher volumes at higher prices

Phil Bailey, Director at Twenty7Tec says:

"In July 2021, we saw a drop in search volumes for all house prices under £500k, but a slight rise in volumes for properties from £500k-£1m and £1m+."

The Euros

Nikki Cooke, Twenty7Tec says:

"The Euros made a real difference to the volume of business being done. The times of day that people searched for mortgages varied and brokers' working patterns worked around 5pm kick offs. Using good data means that brokers and intermediaries can plan for what this means for their business in relation to major events."