Knowledge Bank has revealed that maximum loan to value was in the top five of almost every one of the eight different lending types that Knowledge Bank enables brokers to search on.
The firm’s Criteria Activity Tracker for October reported that in mainstream residential searches, it was brokers’ third most searched item. For second charges, maximum LTVs was the most searched for criteria, while for commercial loans, equity release and self build it was second most searched for.
In buy-to-let, it came in fourth place as it did for bridging loans, but here brokers searched which lenders would lend up to 100% of the purchase price of the property.
Lending to the self-employed was still the number one most searched for criteria in residential mortgages for the second month running.
In buy-to-let, two of the top three searches are for first-time landlords and first-time buyers. The search for limited company buy-to-let moved up from third to second most searched for term in buy-to-let, while the top commercial lending search term was for commercial investment mortgages.
Lending to limited companies overseas was the top search in this category.
Top five searches performed by brokers on Knowledge Bank by brokers during October 2018:
| RESIDENTIAL | BUY-TO-LET | SECOND CHARGE | EQUITY RELEASE | |
| 1 | Self Employed – 1 year’s accounts | First time landlord | Maximum LTV | Maximum age at application |
| 2 | Maximum age at end of term | Lending to Limited Companies | Mortgage or secured loan arrears/missed or late payments | Maximum LTV |
| 3 | Maximum LTV | First time buyers | Missed or late payments | Lending in retirement – applicant retired at application |
| 4 | Payday loans | Maximum LTV | Capital raising / debt consolidation | Lifetime mortgages |
| 5 | Capital raising – debt consolidation | Requirement to be a Homeowner/Owner occupier | Employment current/history | Maximum borrowing |
| SELF BUILD | BRIDGING | OVERSEAS | COMMERCIAL | |
| 1 | Finance purchase of land | Lend in Scotland | Lending to limited companies | Commercial investment mortgages |
| 2 | Custom Build – maximum LTV LTC / cost | Adverse credit | Minimum income – interest only / part and part single applicant | Maximum LTV |
| 3 | Barn conversions | Below market value purchase / BMV | Limited company to a sole trader – change of trading status | Maximum LTV for commercial investment |
| 4 | Capital raising – purchase of land | Lending up to 100% of purchase price | Lend in France | Semi-commercial properties |
| 5 | Custom Build – lend against/ finance purchase of land | Lending to limited companies | Buy-to-let | Minimum borrowing / loan amount |
Nicola Firth, CEO of Knowledge Bank, said: “There is a growing demand for high LTV lending. What we see here is the very start of the process, so what it is that borrowers are really interested in, it will be fascinating to see the UK Finance lending statistics as they appear over the next few months as to just how much the number of high LTV loans increases.
“What these searches do highlight is an interesting snapshot into what the actual demand is. The bit that brokers then get to see is the lenders that actually cater for their clients’ needs. As the number of lenders with their criteria on Knowledge Bank continues to grow, brokers are increasingly finding that they can find a mortgage even for the most complex client’s needs, often from lenders that they would never have considered, or even been aware of before.”
