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07 December 2018

Knowledge Bank’s Criteria Activity Tracker has revealed the top five most searched criteria by brokers during November across eight different mortgage types.

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. This enables brokers to whittle down the lenders that will actually consider their clients unique circumstances avoiding unnecessary effort and delays from failed applications.

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 suggesting that borrowers are looking for the most tax efficient ways to enter this market.

Other results of note include the equity release sector where the top search was for early repayment charges. This reflects the burgeoning product options in the equity release sector and the desire for borrowers to understand any restrictions should they find an alternative loan solution in the future.

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.”