View more on these topics

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 residential searches, it was brokers’ third most searched item; for second charges, maximum LTVs was the most searched for criteria, while for commercial loans, equity release and self-build it was the second most searched for.

In buy-to-let, it came in fourth place as it did for bridging loans, but here brokers searched which lenders would lend up to 100 per cent of the purchase price of the property.

Knowledge says that this reveals that borrowers still feel confident to borrow the maximum they possibly can against any new property, despite political uncertainty.

Lending to the self-employed continued to be the number one most searched for criteria in residential mortgages for the second month running, while in buy-to-let, two of the top three searches were for first-time landlords and first-time buyers.

Knowledge Bank chief executive Nicola Firth says: “There is a growing demand for high LTV lending.  What we see here is the very start of the process, so what it is that borrowers are really interested in, it will be fascinating to see the UK Finance lending statistics as they appear over the next few months as to just how much the number of high LTV loans increases.

“What these searches do highlight is an interesting snapshot into what the actual demand is. The bit that brokers then get to see is the lenders that actually cater for their clients’ needs. As the number of lenders with their criteria on Knowledge Bank continues to grow, brokers are increasingly finding that they can find a mortgage even for the most complex client’s needs, often from lenders that they would never have considered, or even been aware of before.”

The charts below reveal the top five searches for the eight lending types on Knowledge Bank.  Brokers receive results from over 165 lenders across 70,000 different search criteria making it the largest source of criteria data in the mortgage industry.

 

Top five searches performed by brokers on Knowledge Bank by brokers during October 2018:

 

  RESIDENTIAL BUY-TO-LET SECOND CHARGE EQUITY RELEASE
1 Self Employed – 1 year’s accounts First time landlord Maximum LTV Maximum age at application
2 Maximum age at end of term Lending to Limited Companies Mortgage or secured loan arrears/missed or late payments Maximum LTV
3 Maximum LTV First time buyers Missed or late payments Lending in retirement – applicant retired at application
4 Payday loans Maximum LTV Capital raising / debt consolidation Lifetime mortgages
5 Capital raising – debt consolidation Requirement to be a Homeowner/Owner occupier Employment current/history Maximum borrowing
  SELF BUILD BRIDGING OVERSEAS COMMERCIAL
1 Finance purchase of land Lend in Scotland Lending to limited companies Commercial investment mortgages
2 Custom Build – maximum LTV LTC / cost Adverse credit Minimum income – interest only / part and part single applicant Maximum LTV
3 Barn conversions Below market value purchase / BMV Limited company to a sole trader  – change of trading status Maximum LTV for commercial investment
4 Capital raising – purchase of land Lending up to 100% of purchase price Lend in France Semi-commercial properties
5 Custom Build – lend against/ finance purchase of land Lending to limited companies Buy-to-let Minimum borrowing / loan amount

Recommended

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 […]

housing market

UK residential market to grow by nearly 15% by 2023: Savills

A new five-year forecast from Savills describes UK house prices rising 14.8 per cent by 2023, albeit with “significant” regional variation. Specifically, the estate agent sees the North West of England having the greatest compound growth, at 21.6 per cent, and London with the lowest, at 4.5 per cent. Within this range, Wales is predicted […]

Newsletter

News and expert analysis straight to your inbox

Sign up