Significant drop in rate of applications to completions

Published on

There was a fall in completions over the last quarter, with only 22% of purchases completing in July, August, and September, according to analysis from MCI Club.

This is in clear contrast to the first quarter of the year when 60% of applied mortgages completed.

However, remortgages had a stronger completion rate of 64% from July to September. This was still 15% down on the figures from January to March.

MCI did also report that the amount of written business has risen consistently through to October rising, since coming out of the first lockdown in June, back to pre-lockdown levels. Likewise, protection business has continued to grow month on month with October showing the highest number of applications, although the figure is still 17% down compared to the average for January to March.

The data, from MCI and the eKeeper CRM, also showed higher levels of broker and administrator activity over September and October with 26% more diary appointments, 21% more case interactions, and a 45% uplift in users accessing various back-office systems.

Melanie Spencer (pictured), head of the MCI Mortgage Club, said: “It is disheartening that the rate of applications to completions has significantly dropped as, ultimately, there continues to be steady consumer demand across the board post-lockdown.

“I suspect that the realities of the lending market haven’t truly filtered into the purchase market, which has left mortgage brokers to manage expectations and seek out nimble alternatives. This simply demonstrates the advantage of the broker proposition and their ability to service clients’ circumstances, which may not have been as challenging in 2019.

“We know that brokers are working harder, and this is reflected in back and front-office activity for leads and fulfilment. Certainly, the amount of effort going into every application is increasing and, through good processes, people and technology, many brokers are learning and being supported through their technology, to deliver great client outcomes in challenging times.”

Latest POLL

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Advice Guru partners with Pure Retirement to support broker education

Financial adviser learning platform Advice Guru has announced a new sponsorship partnership with Pure...

Nationwide ups LTV limits for interest-only and foreign national borrowers

Nationwide has announced changes to its mortgage lending criteria, increasing the maximum loan-to-value (LTV)...

Lloyds expects swell in completions ahead of stamp duty deadline

Lloyds Banking Group anticipates a 50% growth in property completions this month as buyers...

Satchell the latest to leave HTB bridging division

Lorenzo Satchell has become the latest senior member of the bridging team at Hampshire...

Other news

Advice Guru partners with Pure Retirement to support broker education

Financial adviser learning platform Advice Guru has announced a new sponsorship partnership with Pure...

Nationwide ups LTV limits for interest-only and foreign national borrowers

Nationwide has announced changes to its mortgage lending criteria, increasing the maximum loan-to-value (LTV)...

Lloyds expects swell in completions ahead of stamp duty deadline

Lloyds Banking Group anticipates a 50% growth in property completions this month as buyers...