The Knowledge Bank criteria index for the month said this was likely down to the introduction of the Mortgage Charter, which suggests lenders should look at ways to support borrowers who are struggling with their mortgage payments. This can include extending the mortgage term and switching to interest-only payments.
Searches for joint borrower sole proprietor (JBSP) mortgages also made the top five, returning as a most sought-after product following a two-month break.
Other searches in the top five for residential criteria were ‘missed or late payments’ and ‘maximum age at end of term’, which have been in the top two throughout the year.
In the buy-to-let sector, searches for ‘no requirements to be a homeowner’ and ‘first-time landlord’ made the top five, showing that there is interest in joining into the market and using it as a route to get onto the property ladder.
Knowledge Bank said buy-to-let was an “attractive alternative” to people facing affordability challenges in the residential sector.
Stable specialist markets
Knowledge Bank said this suggested that borrowers were under pressure to pay their mortgages, so brokers were looking for ways to maximise their affordability.
Searches in the bridging and commercial sectors have remained pretty similar throughout the year, which Knowledge Bank said showed signs of stability in these parts of the markets.
In bridging, ‘regulated bridging’ has been one of the top two search terms for two years, indicating a use for these loans to prevent property chains from collapsing.
Both ‘minimum loan amount’ and ‘maximum LTV’ also made the top three searches across the bridging market showing that people were looking to maximise their investment.
The term ‘commercial property’ appeared in the bridging category’s top five searches, which Knowledge Bank said could be a sign that former buy-to-let investors were entering new markets.
The search term ‘commercial owner occupier’ was a new entry for the top five commercial queries. Knowledge Bank suggested this was because a rising number of business owners were looking for ways to buy their own commercial premises to save on rental costs.
Brokers finding solutions
Nicola Firth, CEO of Knowledge Bank, said: “Brokers finding creative solutions for residential borrowers is definitely a theme, with many borrowers desperately seeking assistance with their mortgage terms and payment structures. Others, not put off by these challenges are still exploring ways to buy their first property, be it with family support or by trying to buy a rental instead to give them a foot on the housing ladder. A growing number of brokers are wisely using criteria search to identify lenders capable of offering the required lending solutions.
“Despite ongoing economic shifts, searches show how brokers demonstrate commendable care and caution when advising vulnerable applicants seeking solutions. This thoughtful approach speaks to their dedication to safeguarding their clients from potential challenges in an unpredictable market.
“In the month that saw the launch of Consumer Duty, the key role of brokers in assisting both existing and prospective borrowers has never been more important.”
Knowledge Bank said more than 280,000 searches had been completed on its platform in Q1 and over five million criteria searches have been carried out to date.
