Mortgage Brain has reported that August saw the second highest monthly volume of ESIS generated through its sourcing systems so far in 2020.
While the monthly totals for August were down 5.8% on July, they remain above those seen earlier this year, even before Covid-19 began to take effect.
ESIS volumes have been higher than those seen before the pandemic for the last six consecutive weeks and are now 6.1% above pre-pandemic levels. August also saw the ESIS generated per working day hit the highest level since February.
Mortgage Brain said the growth in ESIS volumes is clearly being generated by homebuyers, with residential purchase ESIS representing a higher proportion of the ESIS generated than pre-pandemic levels for 14 weeks in a row. This has been pronounced for some time too, at around 10% above pre-pandemic levels for 10 consecutive weeks. The buy-to-let sector is also enjoying strong demand from buyers, with purchase ESIS representing 40.6% of the market, around 12% higher than before the pandemic.
Product numbers are trending down slightly, having seen marginal drops for five straight weeks, and now stand at 8,560. However, product numbers have now been above 8,500 for 13 of the last 14 weeks, and are 15.3% above the Covid-19 low point, suggesting this may be the new normal for the weeks and months ahead.
Mark Lofthouse, CEO of Mortgage Brain, said: “The summer months are traditionally a quieter time for the mortgage market, but that isn’t the case this year. The volumes of ESIS being generated show that brokers are enjoying a healthy workload, with demand still strong from homebuyers who put their moves on hold as a result of Covid-19.
“This growth in demand is not being matched by the product numbers however, which appear to have stabilised at around 8,500. Understandably lenders are taking a cautious approach towards their product propositions now, but this does mean that brokers and their clients are having to get by with limited choice compared to the broader range of products they could access at the start of the year.”