Broker searches have gone from acceptance prices as the UK “is in the grip of the perfect storm of high inflation, a cost of living crisis and a change of government”, says Knowledge Bank.
Top research in the residential sector was the maximum age of a borrower could be at the end of the mortgage term, as intermediaries “are aggressively seeking lenders whose criteria will accept their clients,” says the criteria platform’s August activity tracker.
He says that this residential search was the sixth month in a row that it was the most searched criterion and “reinforces the view that even if interest rates remain relatively low, borrowers seek the maximum term to pay off their mortgage”.
The second most popular residential search was for brokers looking for lenders for independent clients, which was in the top five searches for the past six months.
“As the self-employed market continues to grow, brokers are closely monitoring any new restrictions imposed on their self-employed clients,” the report said.
He adds that the buy-to-let industry continues to “lead the way for changes and adjustments” in criteria as lenders take a longer-term view of financial security for landlords and tenants.
The most frequent BTL search was brokers the search for lenders who will lend on loans for limited companies.
This was closely followed by searches for lenders accepting first-time homeowners. This research, when examined in conjunction with the third research, the requirement to own, “shows that even those who do not yet have their own property are eager to enter the housing market with a property. BTL,” the study says.
The secured lending industry had “another busy month of criteria changes” with the maximum allowed loan-to-value ratio continuing to be the most popular search.
The tracker adds: “However, there is reason to be cautious about the second Months in a row, searching for lenders who will raise capital for debt consolidation ranks in the top five searches.
The report says searches for criteria in the bridges sector also remained consistent from the previous month and, like secured lending, the month was marked by multiple changes.
He adds: “Bridge lenders, like others, are trying to interpret market indicators and the potential consequences of rising inflation, the energy crisis and a significant increase in mortgage lead times.
Knowledge Bank chief executive Nicola Firth said: “For a supposedly quiet month when everyone is supposed to be on holiday, August was one of our busiest criteria. and product changes.
“Lenders were watching external economic factors closely and how that affected a borrower’s ability to repay a loan and adjusted its criteria accordingly.
“The consistency of the top searches performed by brokers month after month suggests that they are still struggling to place cases and in some cases re-ignite a mortgage application as long turnaround times mean that mortgage offers are running out.
“For brokers, this does not mean simply resubmitting the same application because their client may now not meet the revised criteria.”