According to Legal & General Mortgage Club (L&G MC), advisor searches for lenders willing to accept borrowers in default increased 157% in January, as did options suitable for arrears and missed mortgage payments, which respectively increased 77% and 90%.
The findings come as the UK’s cost of living crisis continues to bite. Searches for customers with debt management plans also increased, by 134%.
“There is still healthy demand in the mortgage market, but there are also signs that the cost of living squeeze is starting to push some borrowers to remortgage or find alternative mortgage solutions that help them better manage their finances. “, says the director of L&G MC. Kevin Roberts.
“Advisors will have a vital role to play in helping many of these borrowers secure a new fixed rate mortgage or find a lender willing to support those with more complex circumstances,” he adds.
Overall search volumes by advisors increased 80% in January, indicating that demand among first-time buyers (FTB) was strong.
FTB searches for advisors were up 91% from December, as were searches on behalf of owners entering the market for the first time, which were up 63%.
Nonetheless, searches for clients with gifted deposits rose 88% during the month, while searches for owners with gifted equity jumped 82%.