Legal & General’s SmartrCriteria tool recorded a -32% fall in furlough friendly mortgage searches in May showing what could be the first signs that the market is beginning to normalise.
This is the second consecutive monthly drop, after a 40% reduction between March and April. The volumes of searches for mortgages suitable for borrowers with unsatisfied defaults also continued to reduce (-2%) and 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% in May from its March peak.
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Clare Beardmore, head of mortgage transformation and operations, Legal & General Mortgage Club, 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. Advisers, with the support of cutting-edge technology, have so far done an excellent job finding the right options for homeowners across the country and we can expect this trend to continue with the many thousands needing to refinance before the end of the year.”