Brokers’ criteria searches ended the year as they began with changes across all sectors
19 January 2023
The latest data from Knowledge Bank’s monthly criteria index has revealed that December was once again a month of change for brokers criteria searches.
The UK’s largest database of mortgage lending criteria keeps track of the most common searches performed by brokers as they look to place a client’s case.
During December the top five searches in each lending category changed to reflect the needs of clients driven by personal and financial circumstances.
The criteria index shows that in the Residential sector the most popular criteria searched for was once again 'Maximum Age at the End of Term’ and the search for lenders allowing ‘Joint Borrowers, Sole Proprietor’ jumped to second place. ‘Self Employed with 1 year’s accounts’ dropping to third place, the search to place clients who have had 'Missed or Late Payments' remained in the top five for the fourth month in a row suggesting the effects of the cost-of-living crisis is still being felt by borrowers.
The Buy to Let sector saw a shake up in the top five searches with ‘Lending to Limited Companies’ rising to the top spot, pushing ‘First Time Landlords’ down into second place. Other popular searches in the buy to let sector were for 'Minimum Income Required' and the requirement for the 'Borrower to be a Homeowner’ along with 'First Time Buyer'.
Criteria searches in the Equity Release sector also saw a shake up with 'Maximum Age at Application' being the most popular search during December. The search for lenders allowing an application from a 'Married Couple in a Single Name' being the second most popular search and held its place in the top five for the fourth month in a row.
The most popular searches in the Second Charge category were for 'Maximum LTV Allowed' and 'Minimum Loan Amount'. The second charge category has been the most consistent throughout the year with the fewest changes in the top five of all the lending types.
Searches for Bridging loans in December focused on 'Minimum Loan Amount', 'Regulated Bridging' and 'Maximum LTV', these three searches made up the top three spots.
The most common search for Commercial loans was for 'Minimum Loan Amount' followed closely by the search for lenders financing 'Semi-Commercial' properties.
Knowledge Bank CEO Nicola Firth said, “The year ended as it started with a raft of changes across all lending types. Advisors have had a tough year with processing and completion times being extended which slowed commission payments and, in some cases, meant that mortgage offers ran out and had to be re-brokered. In a period of such instability and change it is even more crucial that brokers avoid declined applications where clients think they qualify for a product only to fail the lender's criteria requirements. This is hugely frustrating and completely unnecessary if a criteria search has been performed prior to a product search. Early indications are the 2023 will continue to be a lending landscape of great uncertainly and so brokers need to use all the tools at their disposal.”
Brokers wanting to find out more about Knowledge Bank can visit: www.knowledgebank.uk
