According to Knowledge Bank’s monthly criteria index, in November lenders were still reacting to rising interest rates with lending criteria subject to the “greatest changes”.
On the residential side, lenders who accept one year’s accounts rose to second most popular search. Interest-only searches took the third spot and lenders accepting missed or late payments dropped from third to fifth place.
Maximum age at the end of the term remained in the top spot and time in current employment was fourth most searched for.
In the buy-to-let sector, first-time landlords was the most searched for term in November. Lending to limited company took the second spot, having been first for around six months.
This was followed by minimum income for interest-only, part and part single applicant at third, requirement to be a homeowner at fourth and first-time buyers at fifth.
On the secured loan side maximum loan to value (LTV) took the top spot yet again. The following places were taken by maximum age, minimum and maximum loan amount and lenders who will allow capital raising for debt consolidation.
Criteria searches for bridging and commercial sectors were more consistent with top five searches unchanged for the second month in a row.
For bridging this was regulated bridging, minimum loan amount, maximum LTV, second charge loan and commercial property.
For commercial the top searches were minimum loan amount, semi-commercial properties, maximum LTV, mixed use properties, commercial owner-occupied.
Knowledge Bank CEO Nicola Firth said: “If anyone in the mortgage market was hoping for a period of product and criteria stability then I’m afraid they will have to wait a bit longer.
“Our team continued to respond to daily changes across all lending types and with interest rate changes now a monthly occurrence brokers need to ensure that they are basing applications on the very latest criteria.”
She added: “Brokers and borrowers know that it is hugely time-consuming and frustrating to complete an application only to discover that a borrower now sits outside of the permitted criteria.
“As the cost of living and energy crisis continues to have a significant impact on household budgets brokers simply cannot take it for granted that a lenders’ criteria today will be the same tomorrow.”
