Mortgage technology and sourcing firm Twenty7Tec’s August report also noted the market had returned to relative stability after 18 months of upheaval.
It revealed that 1 in 29 of all mortgage searches are now for properties valued at over £1m, with one in 12 of all completed mortgage searches on £1m plus properties from first-time-buyers.
Statistics from equity release brokers Key Retirement show that in H1 2021 the largest proportion of equity released by over 55s was spent on mortgage repayment at 45 per cent and gifting at 22 per cent. In comparison, only one per cent was spent on holidays, suggesting that parents have been releasing equity in higher numbers than ever before to help first-time-buyers to get on the property ladder.
The Twenty7Tec data also showed five per cent growth in self-build mortgage searches in August 2021 versus July 2021 and first-time-buyers (FTB) accounted for five per cent of all searches.
The percentage of searches in the £150k- £250k valuation bracket is at its lowest for 10 months at seven per cent, despite the ongoing stamp duty relief in this price range.
James Tucker (pictured) CEO of Twenty7Tec, said: “August 2021, aside from the slight market side effects of the bank holiday, was broadly the same as July 2021. However, the fact that one in 12 first-time-buyer searches are now for properties over £1m is indicative of both a housing market that remains exceptionally buoyant, and potentially the size of deposits that FTB’s have been able to save during the pandemic.
I believe we could yet see a significant uplift in remortgage business, as consumers assess their finances after what will no doubt have been a hectic summer – especially as rates are so low at present.”
The latest report developed on the Koodoo analytics platform, in partnership with Iress showed the popularity of five-year fixed rate products continues to increase amongst consumers, with residential remortgage five-year fixed products now representing 34.3 per cent of all searches. These products have been demonstrating a consistent upwards trend over the last 10 months.
The supply and competitiveness of 10 year residential fixed rates continues to improve, with this month seeing an increase as Habito launches new products in this space.
Over the last 10 months, the gap between the proportion of searches for fixed and variable rates has increased steadily, with fixed rate searches now representing 94.5 per cent of all searches.