Mortgages for self-employed borrowers with only a year’s accounts were the most searched-for product on Knowledge Bank according to its criteria activity tracker for July.
The search facility found that the second most searched-for criteria was “maximum age at end of term”, as brokers sought out remortgage options for older borrowers.
After this, the most popular search terms were “defaults registered in the last three years”, “maximum loan-to-value” and “capital raising – debt consolidation”.
The list provides some insight into the most challenging cases brokers are facing at the moment.
In the buy-to-let sector the most popular search term was “minimum income”, followed by “first-time landlord”, “holiday let”, “requirement to be a home owner” and “lending to companies”.
Meanwhile in the second charge sphere the most searched-for term was “maximum LTV”, followed by “defaults unsatisfied”, “capital raising home improvements”, “consumer buy-to-let” and “minimum income”.
Knowledge Bank chief executive Nicola Firth says: “We have heard recently that product numbers are increasing and that is why criteria searching is becoming an essential first step on the advice process.
“Any growth in product numbers is accompanied by a raft of criteria that sits behind the headline rates.”
“One of the most startling facts from the tracker this month is that a broker is searching an average of five separate criteria categories for each case.
“This shows just how complex a borrower’s needs are becoming and how crucial it is for a broker to know at the onset which lenders will consider their client.”
Firth adds: “There have been some interesting results from the tracker this month but once again the most common anecdotal feedback that we receive is frustration that criteria changes are not being widely publicised.
“There is a feeling in the market that only criteria changes that lenders deem to be positive hit the headlines.”