Residential mortgage searches increased by 79% in June as brokers scoured the market for deals for furloughed workers and for products with temporary maximum LTV restrictions.
That’s according to the latest criteria activity tracker from Knowledge Bank which has provided an insight into borrower behaviour in the first full month after physical valuations and viewings resumed.
Overall, brokers’ searches were up to 68% in June as the market responded to eased restrictions following the Covid-19 lockdown.
But the residential market showed even greater pick up of searches, with a 79% increase – reflecting the demand in the market.
The terms brokers were searching for continued to follow the same pattern which has been dominant since the pandemic began.
Indeed, the main residential searches, Knowledge Bank revealed, included ‘Covid-19: Temporary Maximum LTV Restrictions’ and ‘Furloughed Workers’.
To find out more about how we can assist you with your Residential Mortgage please click here
What’s more, the ‘Temporary Maximum LTV’ term was also strongly represented in broker searches in the buy-to-let, second charge and bridging categories.
Matthew Corker, lender relationship manager at Knowledge Bank, said: “Lenders have been very active in June, withdrawing and then reintroducing higher-LTV products.
“Many have also adjusted their affordability and allowable income criteria, as details of the extension to the Government’s furlough scheme become clearer.
“It is no surprise to find that brokers are searching more frequently for these criteria. As demand returns to the market, lenders and brokers are having to move fast to stay ahead of the curve.”
Knowledge Bank has responded to this increase in demand by establishing a weekly Criteria Clinic, enabling brokers to discuss the issues and hot topics they are most concerned about with a panel of experts from a cross-section of lenders.
Top five searches performed by brokers on Knowledge Bank – June 2020 (source: Knowledge Bank)
|RESIDENTIAL||BUY-TO-LET||SECOND CHARGES||EQUITY RELEASE|
|1||COVID-19: Temporary Maximum LTV Restrictions||Lending to Limited Companies||Maximum LTV / Loan To Value||Early Repayment Charges|
|2||Help To Buy Equity Loan Scheme||First-time landlord||COVID-19 : Temporary Maximum LTV Restrictions||Property with an Annex / Outbuildings / Land / Acreage|
|3||COVID-19: Furloughed Workers||Requirement to be a Homeowner||Capital Raising for Debt Consolidation||Timber Framed Construction|
|4||Self-employed – one year’s accounts||Minimum Income – Interest-Only / Part-and-Part Single Applicant||Self-employed – one year’s accounts||Flexible Payments / Ad hoc|
|5||Maximum Age at End of Term||COVID-19: Temporary Maximum LTV Restrictions||Income Multiple used for Affordability Assessment||Minimum Property Value|
|1||Maximum LTV / Loan to Value||Regulated Bridging||Maximum LTV for Commercial Investment|
|2||Maximum LTC – Loan to Cost||Maximum LTV||Semi-Commercial Properties|
|3||Lend against Land||COVID-19: Temporary Maximum LTV Restrictions||Minimum Loan Amount|
|4||Maximum Loan Amount||Minimum Loan||Commercial Owner Occupier|
|5||Barn Conversion||Minimum Property Value||Mixed-Use Properties / Part Commercial|
By Kate Saines
Source: Mortgage Finance Gazette