High LTVs and debt issues highlight broker searches in seconds and bridging – Knowledge Bank

  • 07/03/2019
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High LTVs and debt issues highlight broker searches in seconds and bridging – Knowledge Bank
Maximum loan to value (LTV) broke into the top five broker search terms in January within the second charge and bridging sector.


Within the second charge, the maximum loan amount was the biggest search, followed by maximum LTV and capital raising.

Knowledge Bank added that concern might be raised within the second charge sector as four of the top five criteria searches were brokers seeking lenders who would allow debt or income issues.

Within the bridging sector, the maximum LTV was the top search term, followed by regulated bridging, development bridging, lending up to 100 per cent of purchase price and adverse credit.

Within the self-build sector, barn conversion was the biggest search, followed by lend against land and purchase of land.


Resi, BTL and equity release

Within the residential sector, for the first time two of the top five most popular searches feature adverse credit conditions. Capital raising for debt consolidation and unsatisfied defaults were the fourth and fifth most popular searches respectively.

January is now the third month in a row that lending to limited companies is the most searched for criteria in the buy-to-let sector. This would support the increasing market commentary over recent months that property investors are looking to professionalise with the gap between individual and professional landlords widening.

Within the equity release sector, in January the most searched criteria was for early repayment charges but capital raising to purchase a buy to let entered the top five for the first time. This may suggest that borrowers are looking at buy to let as a way to release the value in their property for investment returns.


Updates happening every day

Nicola Firth, CEO of Knowledge Bank (pictured), said that this year has started with a flurry of activity both in terms of broker activity and criteria changes.

She added: “There are a vast amount of changes and updates happening every day and feedback from brokers reveals that they are now performing multiple searches prior to each application.

“One broker revealed that he performs a quick criteria search before every update with a customer to ensure that nothing has changed since he last spoke with them even if it was just the day before.

“This pace of change creates a vibrant lending landscape but really puts the pressure on brokers to ensure that they are basing their advice and recommendations on the latest possible information.

“In addition to being best practice, using a criteria search system also allows them to evidence and document their process which is becoming increasingly crucial.”


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