Knowledge Bank latest Criteria Activity Tracker has revealed the most search criteria by brokers during the month of August.
Six lending types are included in the tracker and there are over 70,000 pieces of criteria from over 100 lenders on Knowledge Bank’s system.
Within the residential sector the most popular criteria searched by brokers in August was for lenders who will accept ‘Joint Borrower Sole Proprietor’. These types of products are typically designed to allow close family members to help with a mortgage application and most commonly it is the ‘bank of mum and dad’ that is the source of the funds as the parents can use their income as the second applicant.
Other top searches in the residential sector included the maximum age allowed at the end of the term, maximum LTV and a search for lenders who would allow capital raising for debt consolidation.
Within buy-to-let lending this month’s rankings remain fairly consistent from July although the search for lenders who accept first time landlords takes the top spot for the first time. ‘Complex buy-to-let changes have been made by multiple lenders this month although this is yet to break into the top five.
Other results of note include the self-build sector where the top search conducted is for lenders allowing capital raising for land purchase.
The chart below shows the top five search results for six lending types.
Top five searches performed on Knowledge Bank by brokers during August 2018:
| RESIDENTIAL | BUY-TO-LET | SECOND CHARGE | |
| 1 | Joint Borrower Sole Proprietor | First Time Landlord | Maximum LTV |
| 2 | Maximum Age at End of Term / Loan to Age | Lending to Limited Companies | Expatriates |
| 3 | Maximum LTV | Requirement to be a homeowner | Mixed use / part commercial |
| 4 | Capital raising – debt consolidation | Expatriates | Maximum borrowing |
| 5 | Interest only | Holiday Lets | Capital raising home improvements |
| SELF BUILD | OVERSEAS | EQUITY RELEASE | |
| 1 | Capital raising – Purchase of land | Holiday Home | 6 months rule / Day 1 Remortgage |
| 2 | Timber framed / non-standard construction | Expatriates | Minimum age at application |
| 3 | Lender Exposure Limits within a Development / Postcode / Area | Maximum LTV | Solar panels |
| 4 | Employed – proof of income | British National working abroad / Offshore / Overseas | Minimum Term |
| 5 | Conversion of Houses of Multiple Occupation (HMO) | Accountants projection | Minimum age of second applicant |
Nicola Firth, CEO of Knowledge Bank, said: “Although August is traditionally a quiet month in the industry we’ve seen no slow up in broker’s activity in their effort to see where their clients will fit ever-changing lending criteria. Feedback from brokers over the month suggests that because of the base rate increase borrowers have a greater than before level of uncertainty about the products on offer and their ability to qualify for them.
“Coupled to this is evidence of a raft of lenders tweaking and refining their criteria in tandem with price changes as a result of what is only the second base rate rise in over a decade.
“This market uncertainty is a perfect example of where criteria sourcing can pay huge dividends. Brokers seem to be really switched on to the fact that a quick source of criteria against a client’s circumstances can offer reassurance for exiting applications and also generate new lending opportunities.”