Mortgage search activity returning to ‘normal’ – L&G

Mortgage search activity by advisers is showing signs that the market is beginning to normalise, according to new findings from Legal & General Mortgage Club’s SmartrCriteria tool.

Between April and May, L&G stated that searches for furlough friendly mortgages fell by 32%, the the second consecutive monthly drop following a 40% reduction between March and April.

The volume of searches for mortgages suitable for borrowers with unsatisfied defaults also fell by 2%, as demand for mortgages for borrowers with unsecured arrears remained stable, month-on-month.

L&G’s data indicated that overall search activity has also continued to return to more normal levels, having fallen 20% in May from its March peak.

“The mortgage market has been on a rollercoaster ride in recent months with demand reaching unprecedented levels between January and March,” commented L&G Mortgage Club head of mortgage transformation and operations, Clare Beardmore.

“However, we are now seeing the early signs that things may be returning to ‘normal’ with search activity more closely resembling pre-pandemic conditions.”

Alongside signs that demand for mortgages designed for complex borrowers has started to reduce, L&G also reported a growing trend for rapid remortgaging. SmartrCriteria searches on behalf of homeowners that wanted to remortgage after less than six months jumped by two-fifths (40%).

“Many are still likely to feel the financial consequences of the crisis for some time yet and the key for mortgage borrowers is to continue seeking independent mortgage advice when it comes time to find a new mortgage,” Beardmore added.

“Advisers, with the support of cutting-edge technology, have so far done an excellent job finding the right options for homeowners across the country and we can expect this trend to continue with the many thousands needing to refinance before the end of the year.”

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