The firm said this suggested that borrowers are potentially seeking to reduce monthly outgoings temporarily while rates remain high.
Buyers and homeowners are also looking for other ways to save on costs, reflected by a 40 per cent increase in searches for Help to Buy. The scheme ended on 31 March 2023, but there is a clear demand for similar opportunities.
In line with buyers exploring alternative options, searches in relation to right to buy and right to acquire increased by 17 per cent in June, while ex-local authority property searches rose by 29 per cent.
Despite affordability concerns and economic uncertainty, demand from first-time buyers saw an increase in June’s search figures from May by 14 per cent. Affordability searches increased by 21 per cent and minimum income requirement searches rose by 17 per cent.
The firm said this hinted at resilience among potential homeowners, despite economic uncertainty.
Interest from landlords and overseas investors holds up
Legal and General said the private rental sector was bolstering mortgage market activity as landlords continue to benefit from rent increases.
Searches for ‘multi-unit freehold blocks’ increased by 32 per cent and top slicing searches, where a buy-to-let lender factors in the borrower’s personal income to make up any shortfall from rent to secure a loan, rose by 49 per cent. However, there has also been a 38 per cent uplift in searches for rental income, pointing to a desire to maximise on this.
Searches on behalf of overseas buyers increased by 16 per cent, and those with permanent right to reside or indefinite leave to remain increased by 38 per cent. Legal and General said this suggested that overseas buyers were still interested in the UK property market.
Jodie White, head of mortgage products and transformation at Legal and General Technology, said: “It’s clear that the mortgage market remains robust despite ongoing issues with affordability, rising interest rates and stubborn inflation. It’s positive to see that market activity is still being driven by specific sectors including buy-to-let, overseas buyers, and by increased demand for particular property types.
“During this time, it’s vitally important that advisers implement new technologies to best manage demand for mortgage advice across various sectors. Advice is incredibly important right now and advisers have a crucial role to play supporting buyers and ensuring they have access to the full range of options available to them.”
