‘Maximum loan to value (LTV)’ and ‘child benefit’ were the only two constants from November’s top five searched terms
Searches for ‘self-employed’ and ‘defaults’ became the most popular in December, according to new research from criteria search specialist Knowledge Bank.
Knowledge bank is the largest database of mortgage lending criteria held anywhere in the UK, and the monthly criteria index shows the terms that brokers are actually searching for.
The second charge market saw the biggest shake up last month. ‘Self-employed with one year of accounts’ was among the top five most search terms for the first time since July 2020. This may be a result of freelancers looking to use equity in their home to secure debts or redevelop.
The second highest searched criterion by brokers was ‘Defaults – unsatisfied’, which suggests that clients with a history of missing payments are looking to take out a second mortgage. ‘Maximum loan to value (LTV)’ and ‘child benefit’ were the only two constants from November’s top five searched terms in this category.
Interest in the maximum LTV clients can borrow has been a constant for most of this year across the mortgage markets, as lenders have reduced their appetite for risk in response to the pandemic.
However, November and December were the first months since the pandemic began that maximum LTV was not among the top searched terms in the residential market. This could be due to lender confidence returning, with 90% LTV mortgages being brought back.
Additionally, while confidence may continue to build with the news of a vaccine, the recent lockdown and upcoming end to the furlough scheme may cause some lenders to be more cautious moving forward.
With the Help to Buy scheme being amended from December 15 2020, there was a huge urgency for brokers looking to help their clients to secure a mortgage before the deadline – making it the fourth most searched for criteria last month.