MCI and eKeeper mortgage market analysis reveals purchase values are up 12% while remortgage values drop

The MCI Club’s latest analysis of mortgage activity over July and August has revealed that, despite Covid-19, the average mortgage value for purchases is up 12.4% compared to the same period in 2019. The data brings together intelligence from MCI Mortgage Club and eKeeper’s customer relationship management (CRM) system.

Average mortgage purchase values have risen from £202,058 at the end of August 2019 up to £230,768 now. At the same time the average remortgage value has dropped 11.11%, down to £166,954.

Illustrating just how robust the UK mortgage market is, the picture for the year from January until the end of August shows an average growth of 4.46% for purchase mortgages, compared to the same period last year, but a trending decline of 3.7% for remortgage values across the year so far. The figures for the year put into relief just how remarkable July and August were this year, a time that would normally see values fall away as competition diminishes when people go on holiday.

July and August saw a return to normal service for purchase mortgages. This followed the announcement of the stamp duty holiday and the release of pent-up demand after a slump in purchases in April and May due to the three months of lockdown. While remortgage values were down, purchase volumes consistently crept above for the first time since the peak of remortgages in April.

The combination of data from MCI and eKeeper highlight the different trends and activity both within the mortgage market and brokers’ business. During July and August, case activity by advisers and administrators continued to grow, matching 2019’s figures and remaining steady during “holiday dips” over August, with an average of 55,000 case interactions per week compared to 46,700 in August last year.

eKeeper’s CRM system recorded the number of diary appointments brokers made with clients wanting mortgage products. This continued to rise above historical averages by 3% in July and August. Surprisingly diary appointments with brokers for protection products fell by 9% following continued growth since the beginning of lockdown. The fall in protection demand is all the more surprising given the risk of redundancy brought about by the Covid-19 lockdown; where one would have expected to have seen an increase in demand for income protection products.

Melanie Spencer, head of MCI Mortgage Club, commented that, “The stamp duty holiday, together with pent-up demand following the national lockdown, certainly appears to have stimulated the market and our downstream figures indicate that rising property prices are being driven by an increase in demand to move home. These demand factors are paired with the low cost of borrowing but a limited supply of high LTV products. We know that lending criteria is tightening so not all demand is being met, but brokers still continue to service their clients within challenging market conditions.

“Mortgage appointments provide comfort that brokers are building a pipeline of activity into the Autumn although a drop in appointments for protection emphasise the need for brokers to proactively contact their clients about this vitally important area of business.

“Appointments are a combination of new and existing customers with many appointments generated automatically within eKeeper before any deal end date. This comes at a time where remortgaging and low interest rates affords a prime opportunity to engage. Of course, protection is about more holistic advice outcomes for consumers, especially vital during these rocky times. Here the MCI Club can assist advisers through our qualified panel and other support services.”