Research from Knowledge Bank showed searches for ‘Furloughed workers’ surged after the Chancellor announced the job support scheme extension on 5 November and lenders reacted quickly, with over 30 updates to criteria in two days with most tightening and restricting borrowing.
For the first time in over a year, the term ‘soft footprint at Decision in Principle (DiP) stage’ was among the top five most searched for criteria by brokers.
The Help to Buy scheme has appeared in the top five searches every month since April and the successor scheme comes in on 16 December with regional caps and limited to first-time buyer only.
In buy-to-let, ‘First-time Landlords’ was the top searched term for the third month in a row, followed by lending to limited companies.
‘Holiday lets’ re-entered the top five after a month-long hiatus, potentially as a result of the second lockdown causing more interest in ‘staycations’.
In the bridging arena, for the first time ever, ‘first-time bridgers’ entered the top five most searched for terms, possibly with the stamp duty deadline, again, looming, buyers could be fearful of missing out on the stamp duty saving but ready to remortgage after April.
‘Maximum LTV / Loan to Value’ was the top searched criteria in second charges, self-build, bridging and was the second highest searched in the commercial sector, despite 10 lenders increasing loan-to-values up to 85-90 per cent last month.
Matthew Corker, lender relationship manager at Knowledge Bank, said: “The only constant at the moment is change. With the furlough scheme back, discussions around an extension to the stamp duty holiday and record numbers of mortgage approvals, the property sector continues to move at a rapid pace.”
He added: “Lenders are constantly adapting criteria to keep up with the evolving market. It is now physically impossible for any mortgage broker to keep all the different criteria in their heads. So, it is now more important than ever for brokers to use a comprehensive criteria search system to ensure they can provide their clients with best advice – and evidence that they have done so.”
Knowledge Bank contains the criteria of over 200 lenders and multiple search criteria can be entered at one time, across eight different lending types including residential, buy-to-let, equity release, self-build, second charges, bridging, commercial and overseas mortgages.
