Knowledge Bank has revealed the the top five most searched criteria by brokers during November across eight different mortgage types.
Its Criteria Activity Tracker has shown there continues to be a desire for higher LTV loans as first reported last month with maximum LTV being one of the top five searches in six out of the eight product categories within the Knowledge Bank system.
Knowledge Bank now contains almost 80,000 pieces of criteria and the index reveals the searches brokers perform prior to even mortgage sourcing.
Within residential mortgages the top search was once again for lenders that would accept self-employed applicants with just one years’ accounts. This has been the top search for the past three months which shows that the self-employed market is certainly no fad but a sustained borrower segment. Also within the residential sector, Help to Buy and equity loan schemes made it into the top five searches for the first time in 2018. This shows the diversity of borrower requirements that brokers are faced with on a daily basis.
Buy-to-let criteria searching once again focused on those looking to enter the buy-to-let sector for the first time with first time landlord and first-time buyers taking two of the top five spots. However, the most popular search with buy-to-let was for lending to limited companies.
Meanwhile, in the equity release sector the top search was for early repayment charges.
The charts below reveal the top five searches for the eight lending types on Knowledge Bank. Brokers receive results from over 150 lenders across 80,000 different search criteria making it the largest source of criteria data in the mortgage industry.
Top five searches performed by brokers on Knowledge Bank by brokers during November 2018:
| RESIDENTIAL | BUY-TO-LET | SECOND CHARGE | EQUITY RELEASE | |
| 1 | Self Employed – 1 year’s accounts | Lending to limited companies | Maximum loan to value | Early repayment charges |
| 2 | Maximum loan to value | First time landlord | Debt Management Plan (DMP) – Ongoing / Current | Minimum borrowing / loan amount |
| 3 | Maximum age at end of term / loan to age | First time buyers | Interest Only | Downsizing protection option |
| 4 | Overtime – fluctuating | Requirement to be a homeowner / owner occupier | Maximum borrowing / loan amount | Home reversion plans – early vacancy guarantee |
| 5 | Help to buy / equity loan scheme | Maximum loan to value | Consumer buy to lets | Ex-council / Local Authority houses |
| SELF BUILD | BRIDGING | OVERSEAS | COMMERCIAL | |
| 1 | Maximum loan to value | Regulated bridging | Self-employed – Director / Limited company | Semi-commercial properties |
| 2 | Accountant’s letter / certificate – accepted | Maximum LTV for bridging | Lending to limited companies | Maximum loan to value |
| 3 | Stage payment type – advance | Development bridging – maximum loan to cost | Minimum income – interest only / part and part single applicant | Commercial Investment Mortgages |
| 4 | Retained / additional property in the background | Bridging – maximum borrowing / loan amount | Limited company to a sole trader | Commercial owner occupier |
| 5 | Self Employed – 1 Years Accounts | Minimum borrowing / loan amount | Buy-to-let | Planning permissions |
Nicola Firth, CEO of Knowledge Bank said: “Once again the criteria tracker shows activity at the coal-face of broker activity. As we approach the end of the year the pressure on brokers to find lenders for their clients’ mortgage needs becomes more and more intense.
“As a result it’s crucial that no time is wasted trying to pair borrowers with lenders whose criteria simply excludes them. As you can see from this month’s activity tracker although some searches remain popular from month to month new search topics are regularly breaking into the top five. This is partly due to ever changing and complex borrower requirements and also as a result of product innovation from lenders that opens up borrowing opportunities.
“With this constant change it’s crucial that brokers use the tools at their disposal to make their advice process even more focused and productive.”