MCI Club has reported that pre-mortgage activity in June has returned to the same levels as 2019.
Its data shows diary appointments rising by more than 50% to 46,120 between May and June – very similar to 2019 levels and only marginally down on pre-lockdown.
This follows an average 31% drop-off over April and May, even before the Chancellor’s recent announcement of a temporary Stamp Duty cut.
However, protection activity, which spiked in March 2020, dropped by an average of 40% for the same period and is 30% lower for June compared to 2019.
Case activity relating to brokers and administrators working on mortgage and protection cases saw a significant drop of 38% at the beginning of lockdown. This has yet to return to pre-lockdown levels and remains 34% down compared to 2019 activity in the same period.
Remortgages continue to outstrip purchases, a situation that started in September 2019, as macro factors such as the general election and Brexit negotiations were played out. Leading up to the lockdown announcement, the number of purchases significantly declined but remortgages rose dramatically the week after the lockdown announcement, jumping 63% in four weeks.
Melanie Spencer, head of the Mortgage Club, said: “It’s certainly refreshing to see that mortgage activity is returning to pre-lockdown and 2019 levels.
“Of particular interest is the spike in remortgages directly after the lockdown announcement. This is part of an ongoing trend of remortgages outstripping purchases, indicating both that customers are seeking alternative deals and that customer retention remains a key feature for advisers at present.
“The observed case activity is a potential concern from a compliance perspective, as specific actions and activity may not be recorded during the advice process. Alternatively, this could be caused by firms furloughing support staff, who typically undertake much of this function. Its gentle rise in June aligns with support staff returning to work. Nevertheless, compliance is a crucial factor in the advice process, and one where MCI Club can offer businesses a more streamlined alternative.”