May has seen an increase in the number of searches related to delayed and missed mortgage payments, according to Knowledge Bank’s data from the residential mortgage sector.

The data from Knowledge Bank also highlights financial difficulties in the UK, as inflation remains above target at 8.7%.

It found that there has been a noticeable surge in the trend for “joint borrower, sole proprietor” mortgages in the past three months, which is usually parents or grandparents helping their children get a foothold on the property ladder.

Furthermore, brokers have seen clients looking to extend their mortgage terms to make their monthly repayments more affordable.

Earlier in the year, a survey by Zoopla found that over half of Londoners are relying on their parents’ wealth to get them on the property ladder.

Data also found that there has been increases in the number of searches for “self-employed – one year’s accounts” and in “holiday let” searches, with the latter seeing a rise in searches for the first time since October 2022.

This rise in holiday let searches is reflective of the ways in which landlords are finding good affordability across their portfolios. With the impending planning permission rule changes, the market could see a rush in applications for holiday lets.

Knowledge Bank CEO, Nicola Firth, said: “As borrowers face the burden of increasing living expenses and often rising debts, many are crying out for help. Others are being hit especially hard if they are coming off a fixed rate mortgage at sub-2% and facing the prospect of moving on to one that could be three times higher.

“Despite this, it is clear that some are trying every means possible to get on the housing ladder, from taking a ‘joint borrower, sole proprietor’ mortgage, to extending payments over a longer term and even looking at buying a rental property before their own home.

“The current economic climate and outlook, again point to the importance and value of mortgage brokers to help both existing and potential borrowers. At the same time we can see just how challenging the market is for brokers, with the need to navigate complex requirements, ever changing rates, and complex criteria.

“Fortunately, that’s where Knowledge Bank is here to help with our technology playing a pivotal role in helping brokers and their customers. The new Consumer Duty Flags particularly will help brokers identify those who need more support during these challenging times. Also allowing lenders to identify any underserved areas.”

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