It is the second consecutive month searches for lenders that will accept borrowers on furlough leave has fallen after a 40 per cent reduction between March and April.
Previous analysis of searches made using the club’s SmartrCriteria tool have painted a picture of a market dominated by needing to find suitable deals for borrowers with financial complications.
But as furlough searches decline, the market has started to resemble “pre-pandemic conditions”.
The volumes of searches for mortgages suitable for borrowers with unsatisfied defaults also continued to reduce falling by two per cent. Demand for mortgages for borrowers with unsecured arrears remained stable month-on-month.
Overall search activity has also continued to return to more normal levels, having fallen 20 per cent in May from its March peak.
The club also tracked a growing trend for remortgaging after six months of purchasing a home. Searches for quick remortgages rose by 40 per cent.
Legal & General said it is unclear what is driving this, but the current strong house price inflation may be leading to some people that have purchased recently to cash in on the property price increases seen in recent months by selling soon after their purchase. Other homeowners could be leveraging the added equity in their homes to access the more affordable interest rates available at lower loan to value bandings.
Clare Beardmore (pictured), head of mortgage transformation and operations, said: “The mortgage market has been on a rollercoaster ride in recent months with demand reaching unprecedented levels between January and March. However, we are now seeing the early signs that things may be returning to normal with search activity more closely resembling pre-pandemic conditions.
“Of course, 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. ”