Criteria search system Knowledge Bank has released the five most searched for residential mortgage types in August, with the “Bank of Mum and Dad” coming out on top.
Research from Legal & General recently revealed that the bank of mum and dad is now helping a quarter of property transactions.
After the bank and mum and dad (classed as ‘joint borrower sole proprietor’) came ‘maximum Age at End of Term/Loan to Age, ’then ‘Maximum LTV,’ followed by ‘capital raising – debt consolidation,’ and finally, ‘interest only.’
Within the buy-to-let category, ‘first-time landlords’ came first for the first time, followed by: ‘lending to limited companies,’ ‘requirement to be a homeowner,’ ‘expatriates’, and ‘holiday lets’.
The data comprises 70,000 pieces of criteria from over 100 lenders, which Knowledge Bank calims makes it “the definitive source of data on mortgage and loan criteria.”
Knowledge Bank chief executive Nicola Firth says: “Feedback from brokers over the month suggests that because of the base rate increase, borrowers have a greater level of uncertainty about the products on offer and their ability to qualify for them. Coupled with this is evidence of a raft of lenders tweaking and refining their criteria in tandem with price changes as a result of what is only the second base rate rise in over a decade.
“This market uncertainty is a perfect example of where criteria sourcing can pay huge dividends.”