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Interest-only deals and downsizing protection among top criteria searches

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  • 05/12/2019
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Interest-only deals and downsizing protection among top criteria searches
Interest-only mortgages, properties with an annex, downsizing protection on equity release deals and holiday lets were some of the most popular mortgage broker criteria searches in November.

Knowledge Bank’s analysis of broker searches last month revealed the most change in the equity release sector.

 

Equity release

All top five criteria searches in the later life mortgage sector were new in November. This was the second consecutive month where the leading broker searches in equity release have changed from month to the next.

The highest-ranked search, ‘property with an annex/outbuildings/land/acreage’, last topped the search chart in February. Downsizing protection was in second place and has only featured twice before in the top five. A number of providers now offer this option so borrowers can avoid incurring early repayment charges if they move.

Advisers looking for equity release deals also searched for ‘lodger/boarder/rent a room’, pushing it up into fifth place. It is the first time this criteria has made it into the top five searches.

 

Residential

Brokers sourcing residential mortgages continued to search Knowledge Bank’s system for ‘maximum age at the end of the term’. This has been the most searched for residential mortgage criteria since February.

Interest-only deals, however, moved into second place which was the highest-ever rank for this type of deal.

 

Buy-to-let

The top three searches in the buy-to-let category remained broadly similar to recent months. However, new entries in fourth and fifth places respectively for ‘houses in multiple occupation (HMOs)’ and ‘holiday lets’ suggest would-be landlords are looking to profit from increasingly transient demand in the private rented sector, according to Knowledge Bank.

Nicola Firth, chief executive of Knowledge Bank, said: “It’s been a month of massive change in criteria searching with big movements across many lending categories. The equity release market, especially, continues to throw up surprises, with searches rarely featuring in the top five in two consecutive months.

“With lenders’ criteria showing so much change from day to day, it is vital that brokers take advantage of all the tools at their disposal so they can stay one step ahead and continue to give clients the best possible advice. Only by using technology to their advantage can brokers ensure they are getting the best deal for their client.”

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