Broker’s criteria searching in April throws up changes across the board.

04 May 2023

Knowledge Bank’s monthly criteria index has revealed a host of changes in broker’s criteria searches as they try to place their clients' cases with lenders. As the UK’s largest database of mortgage lending criteria, Knowledge Bank tracks all the most common searches performed by brokers as they look to place a client’s case.

In the Residential category brokers searching for lenders who will accept ‘Late or Missed Payments’ was the third most popular search and the criteria ‘Interest Only’ was in third place, back in the top five after a month’s absence. The popularity of these two searches suggests that the tightening of household budgets is continuing, and standard residential borrowers' circumstances are changing and not for the better.

Searches in the Equity Release category after a clean sweep of changes last month were more settled in April although the search for the ‘Remaining Term of a Leasehold’ and ‘Early Repayment Fees’ both rose in popularity during the month. This suggests that we are still in a period of financial uncertainty and borrowers are mindful of any penalties should rates fall and they wish to switch away from their current deal.

Entering the top five searches in the Self-Build sector was ‘Non-Standard Construction’ which suggests innovation in building materials used for new properties and in fourth place was brokers looking for Self-Build lenders who will ‘Lend in Scotland’.

Other changes of note come in the Bridging sector with searches for lenders accepting ‘Commercial Property’ entering the top five for the first time since January and in Commercial product sourcing as brokers search for ‘Mixed Use Properties’ was the third most popular search and in the top five for the first time in four months.

Knowledge Bank CEO Nicola Firth said, “This relentless change demonstrates once again that brokers cannot sit on their laurels and that if it's not lenders changing criteria daily then it’s their clients' profiles that are changing.

“One of the consequences of a volatile financial landscape is that household circumstances change as borrowers are hit with cost-of-living increases and perhaps savings begin to run out. As a result, they are approaching brokers with more complex needs and relying on them to find a lender who will accept them as a borrower. Mortgage rates tend to dominate the headlines but it’s all too easy to forget that the borrowers must qualify for the rate in the first place.

“During the first quarter of 2023 there were over 280,000 searches on Knowledge Bank and so the role of the mortgage broker has never been more important, and technology is playing a pivotal role in helping brokers find a home for their client's loans.”

Brokers wanting to find out more about Knowledge Bank can visit: www.knowledgebank.uk