A drastic drop in mortgage products on the market has encourage an influx in mortgage searches according to mortgage fintech website Twenty7tec. More and more mortgage products have rapidly left the market over the last few days, weeks, and months as a result of rising interest rates and inflation becoming too high to handle.
Twenty7tec have released figures that show that they received 101,620 mortgage related queries on the 27th of September, the highest they have ever received in one day, a 14.3% increase from the 26th of September. This surge in calls came as lenders started to pause new mortgage lending one after another as the market found itself in a freefall of economic uncertainty and customers started to enquire about refinancing their existing properties to save money.
What Are The Experts At Twenty7Tec Saying?
Director of customer relations at Twenty7tec Nathan Reilly commented:
“The increase in mortgage searches yesterday was particularly driven by the remortgage market. Remortgaging accounted for 54.6% of the market yesterday, well ahead of its 45% long-term average. I think everyone’s looking for greater certainty. That might well come at the price of a day or two’s pause as lenders price in stamp duty cuts, interest rate changes and a fluctuating currency.
It’s different to where we were a couple of years ago in the midst of the pandemic as there are still products available at all LTV ranges for purchase and remortgage across the market. Combining that decrease in products available with fewer products and some lenders accepting no new business and we have a significant bottleneck forming in the market.
The stamp duty change last week has fuelled further demand just as lenders look at how they price in all the macroeconomic data. That said, it’s likely just a short-term pinch point that the market will price as and when things settle down over the coming days. The simple fact is that there’s plenty of cash still available to lend.”
Data recorded by Twenty7tec found that there is the lowest volume of mortgage products in the market since 15 March 2021. They report that at the end of the day yesterday, there were 11,339 products in the market compared to 12,489 the day before and 13,717 two days ago or in other words, a drop of 17.3% in just two days!
What Do Mortgage Advisors Say?
But it is not all doom and gloom, from a mortgage broker perspective the market is still very much flourishing and although products are being withdrawn or completely paused by lenders, there are still plenty of banks and building societies lending and plenty of competitive products on the market. But, we have to make it clear, that these deals and rates are changing literally on a daily basis. So, if you are considering remortgaging or restructuring your loan to save money, don’t wait. Time is of the essence. Call us at Oportfolio today so that we can make sure that you are in the best financial position possible.
If you or anyone you know is worried out rising mortgage rates or lenders pulling out of the market, please give our team a call for a chat.