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Buy to let makes up two-fifths of all criteria changes in July – Knowledge Bank

  • 18/08/2022
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Changes made to buy-to-let mortgage criteria accounted for nearly 40 per cent of all updates in July, a sourcing system provider has said.

According to Knowledge Bank, mortgage alterations in this part of the sector made up almost two-fifths of the 1,500 criteria updates last month. 

This was followed by the residential mortgage market which accounted for 30 per cent of criteria changes and the bridging sector which made up 23 per cent. 

The buy-to-let criteria most searched for by brokers was lending to limited companies followed by enquiries for lenders who accept first-time landlords. 

In the residential space, the top search was for the maximum age at the end of a mortgage term. There were also a higher number of searches for criteria accepting self-employed borrowers with one year’s accounts. 

For brokers with clients looking for bridging finance, the top search was for lenders providing regulated finance. For the first time since February, searches for lenders accepting heavy refurbishment made the top five searches of the month. Knowledge Bank said this suggested bigger projects were being considered. 

While there were not as many criteria changes in the commercial mortgage market, searches for products permitting a commercial owner-occupier were among the top five searches for the first time in three months. The most searched-for area was for lenders offering commercial loans on semi-commercial properties, hinting at the changing shape of the high street. 

Nicola Firth (pictured), chief executive of Knowledge Bank, said: “July was another hugely busy month for criteria changes and our dedicated team worked flat out with lenders to keep up with the changes and so it would have been impossible for brokers to stay on top of all the changes. The standout sector for change in July was buy to let and a raft of product and criteria changes flooded in each day.   

“There has also been a huge shake-up in the bridging sector which saw almost a quarter of all criteria changes in the month. Bridging lenders continue to innovate and it is one of the most-fluid sectors in the market. This makes it highly adaptable to political and economic change and brokers need to keep a close eye on changes which are happening daily.   

“With reports that completion times becoming longer and longer, coupled with rates rising, it’s imperative that brokers don’t waste a second on failed applications and know at the outset which lenders will accept their clients by checking criteria conditions prior to a product search.” 

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