High LTVs remain ‘priority’ for brokers: Knowledge Bank

Technology-Tablet-Computer-Tech-500x320.jpg

Knowledge Bank’s monthly ‘criteria activity tracker’ shows brokers are looking for higher LTV loans, alongside mortgage deals for the self-employed. 

This research shows the top five most searched for criteria used by brokers during November across eight different mortgage types.

In the residential market the top search once again was for lenders that would accept self-employed applicants with just one years’ accounts. 

This has been the top search for the past three months showing the self-employed market is a sustained borrower segment.

It is clear there is also a desire for higher LTV loans. This was the second most searched for criteria in the residential sector, but it was also in the top five in a number of other product categories: including buy-to-let, second charge mortgages, self-build, bridging and commercial lending.

Within the residential sector Help to Buy loans and equity loan schemes were also among the top five searches for the first time this year. Knowlege Bank says this shows the diversity of borrower requirements that brokers are faced with on a daily basis. 

In the buy-to-let market the focus was on those entering this sector, with searches for mortgages eligible for first-time landlords and first-time buyers taking two of the top five spots. 

However, the most popular search within the buy-to-let sector was for lending to limited companies – suggesting that borrowers are looking for the most tax efficient ways to enter this market.

In the equity release sector, the most popular search was for early repayment charges. Knowledge Bank says this shows the growing product choice in this market and the desire for borrowers to understand the restrictions should they find an alternative loan in the future.   

Knowledge Bank’s chief executive Nicola Firth says: “Once again the criteria tracker shows activity at the coal-face of broker activity. 

“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 changing borrower requirements but it is also as the result of product innovation from lenders that opens up borrowing opportunities.”

Recommended

Max LTV October’s most searched for criteria on Knowledge Bank

Maximum LTVs proved to be the most common search topic among brokers using Knowledge Bank in October. Knowledge Bank’s Criteria Activity Tracker finds a growing focus on maximum LTVs, with this criteria in the top five of almost every one of the eight different lending types searched for by brokers on the platform. In mainstream […]

TMA Club partners with Knowledge Bank

TMA Club has announced a deal that sees it becoming the first mortgage club to offer the Knowledge Bank criteria search system to its advisers. Including the two new recently added bridging and commercial lending types, Knowledge Bank now has over 70,000 different criteria from 165 lenders, and includes overseas mortgages in over 50 countries. […]

Knowledge Bank expands criteria with commercial and bridging loans

Criteria sourcing provider Knowledge Bank has expanded its offering to include two new lending types to its system: bridging and commercial. This adds over 9,000 new criteria to the system, bringing the total criteria to over 70,000. Today’s announcement follows a six-month trial period with Connect for Intermediaries, in which time Connect’s brokers performed in […]

Hinckley and Rugby adds new limited company BTL deals

Hinckley and Rugby Building Society has released two new products for limited companies, exclusively available through specialist mortgage distributor 3mc. The new buy-to-let products are a two-year discount and two-year fix. Both products are designed for properties held within special purpose vehicle companies with up to four shareholders. The mortgages’ maximum LTV is 70 per […]

Thumbnail

Health Shield joins the Association of Medical Insurance Intermediaries

Health cash plan provider Health Shield has joined the Association of Medical Insurance Intermediaries (AMII) as a corporate member. The non-profit-making Friendly Society is one of eight health cash plan providers to join the intermediary trade body, which is looking to establish working parties with intermediaries and providers on issues such as product innovation and regulation.

Newsletter

News and expert analysis straight to your inbox

Sign up