Knowledge Bank has revealed the top five, most searched criteria by brokers during December with maximum borrowing high on the agenda for half of the categories.
Since making its first appearance in November, ‘Help to Buy’ remains in the top five residential searches for the second month running, however ‘capital raising – debt consolidation’ appeared for the first time.
Making up the other places in the residential sector are the consistently searched ‘Maximum Loan to Age’ and ‘Self-employed borrowers with one years’ accounts’.
Brokers’ top equity release search when interrogating the Knowledge Bank system was to find lenders who would lend to non-borrowing occupiers. The second most popular search was for lenders who would lend on Grade 2 listed buildings.
Lenders who offer the highest LTV continue to be the top search in the second charge sector. The second most searched for criteria in December was for lenders who would consider applicants classed as all benefits with no earned income which shows the search for additional debt even from people with no earned income.
Within the self-build sector, maximum LTV remains the top search for a second month for those looking for self-build mortgages.
December’s index reveals that regulated bridging was the top search within the bridging sector for the third time in four months.
Top five searches performed by brokers on Knowledge Bank by brokers during December 2018:
| RESIDENTIAL | BUY-TO-LET | SECOND CHARGE | EQUITY RELEASE | |
| 1 | Maximum Age at End of Term / Loan to Age | Lending to Limited Companies | Maximum LTV / Loan to Value | Non-Borrowing Occupiers |
| 2 | Self Employed – 1 Years Accounts | First Time Landlord | All Benefits No Earned Income | Grade 2 Listed Buildings |
| 3 | Capital Raising – Debt Consolidation | Requirement to be a Homeowner / Owner Occupier | Lend in Scotland | Applicant with a Power of Attorney |
| 4 | Help to Buy 1 / Equity Loan Scheme | First Time Buyers | Minimum Borrowing / Loan Amount | Interest Payment Roll Up Option |
| 5 | Income Multiple – Affordability | Minimum Income – Interest Only / Part and Part Single Applicant | Capital Raising – Purchase a Buy to Let | Downsizing Protection Option |
| SELF BUILD | BRIDGING | OVERSEAS | COMMERCIAL | |
| 1 | Maximum Loan to Value | Regulated bridging | 6 Month Rule / Day 1 Remortgage | Commercial Investment Mortgages |
| 2 | Lend Against / Finance Purchase of Land | Maximum LTV for Bridging | Booking / Application / Processing Fees | Maximum LTV / Loan to Value |
| 3 | Barn Conversions | Development bridging – Max LTV on acquisition | Air BnB | Semi-Commercial Properties |
| 4 | Custom Build – Maximum Borrowing / Loan Amount | Adverse credit | Expatriates | Maximum LTV for Commercial Investment |
| 5 | First Time Buyers | Minimum property value | Affordability Calculator | Maximum LTV / Loan to Value for Investment Properties |
Nicola Firth, CEO of Knowledge Bank said: “The year ended largely as it had started with a huge number of searches across the different product areas. During 2018 new lenders entered the market but it was product innovation that really was the stand out change.
“With interest rates remaining low, lenders continue to compete on criteria in addition to rate which makes it increasingly difficult for a broker to know who will or won’t accept their client. This product growth was coupled over the year with borrowers having increasingly complex property and financial circumstances.
“On average brokers searched on five individual pieces of criteria for each borrower which shows how essential it is for a system to ensure that cases are not sent to lenders who will inevitably turn them down.”