Knowledge Bank saw ‘Temporary Maximum LTV Restrictions’ as the leading broker search last month; indeed, it has topped the poll for the sixth month running.
Terms relating to coronavirus have dominated broker criteria searches for six consecutive months in residential, second charges and bridging loans.
Continued searches for ‘Covid-19: Furloughed Workers’ has featured prominently in the residential market since April. Knowledge Bank expects to see searches relating to furloughed workers increase in the next two months as furloughed buyers attempt to get mortgages approved before they are faced with potential uncertainty over employment when the furlough scheme ends at the end of October.
‘Maximum Age at End of Term’ was in the second top spot for residential.
A new search in the bridging market is ‘Commercial Property’ which Knowledge Bank speculates could be making an appearance because lenders are tightening their grip on commercial lending. Additionally, it could be because companies are looking to expand capacity under new social distancing measures to enable workers to come back into the office.
Searches for ‘Holiday Lets’ is becoming a trend in the buy-to-let market, staying in the top five search results for August following the surge in UK holiday makers staying closer to home this year.
The equity release and self-build markets saw the biggest changes out of all seven categories recorded by Knowledge Bank, with only two of the five searches remaining consistent. A spike in searches for ‘Debt Management Plan – Ongoing / Current’ was evident in the equity release market.
In the self-build market three new searches appeared in the top five results. The number of people searching for ‘Maximum LTV / Loan to Value’ indicates that more people are exploring the idea of taking out mortgages for self build projects.
Matthew Corker, lender relationship manager at Knowledge Bank, said: “Broker criteria searches in August provided clear signs that the housing market is still being affected by Covid-19.
“It is evident that there is growing concern around mortgage eligibility with consumers across the board, particularly those looking for higher LTV mortgages. The looming end to the furlough scheme also continues to feature prominently as those on furlough attempt to get mortgages approved before their furlough ends.
“In a similar vein, more first-time buyers are increasingly reliant on family members to give them a helping hand to get on to the property ladder, which is impacting the maximum age at the end of the mortgage and may also have a longer-term impact on equity release options.
“Coronavirus has impacted consumer habits, and we are beginning to see the wider trends taking place as a result of this with buyers and lenders alike.”