In June, the top search query among brokers in the residential market was ‘maximum age at the end of term’. This was followed by the search term ‘missed or late payments’.
Knowledge Bank said this was the ninth month in a row where ‘missed or late payments’ made the top five searches in a month, pointing to the current state of borrower finances.
Signs of borrowers looking to manage their money were also evident in the second charge sector, where ‘capital raising for debt consolidation’ was the fifth most searched term and ‘interest-only’ was the fourth. Knowledge Bank said the latter showed people were seeking ways to reduce their mortgage payments as it was the first time in a year that the term made the top five search queries.
Other top searches in the second charge market in June were ‘maximum loan to value’ and ‘minimum loan amount’, which Knowledge Bank noted was also among the most searched for terms in the bridging and commercial categories.
In the equity release category, Knowledge Bank said there was a “resurgence in interest” for ‘leasehold remaining term’, ‘early repayment charges’ and ‘ex-local authority houses’. The firm said this could suggest people who bought a council flat may be exploring their options while others are finding that their pensions no longer cover their expenses.
For brokers dealing with buy-to-let borrowers, ‘first-time buyers’ was the fifth most searched term, suggesting that people are looking for alternative ways to get onto the property ladder. ‘First time landlord’ was the second most searched query, followed by ‘no requirement to be a homeowner’.
Exploring options
Nicola Firth, CEO of Knowledge Bank said: “Amid the mounting financial challenges faced by borrowers, many are desperately seeking assistance with their mortgage terms and additional borrowing for debt consolidation.
“Brokers are exploring options to ease their clients’ financial situation. For borrowers transitioning from a fixed rate, the prospect of moving to a significantly higher rate is particularly onerous.”
She said the broker searches were evidence that borrowers were “resorting to every possible means” to find solutions.
Firth added: “The crucial role of brokers in assisting both existing and prospective borrowers has never been more important. At the same time, brokers are encountering unparalleled challenges in their efforts, as they navigate rates that are being pulled every few days, and an extensive array of criteria to locate a lender capable of providing assistance. The task of finding a lender who can offer the necessary help has become increasingly demanding.”
