Searches for interest-only mortgages jumped by over half (51%) in September, with first-time buyers and existing homeowners showing high levels of engagement in the mortgage market, Legal & General (L&G) Ignite has found.

The free mortgage research and sourcing platform also found that searches on behalf of borrowers enquiring about shared ownership products also increased by just under a third (32%) between August and September.

The firm has said that this is a reflection on both the current economic headwinds and long-term affordability concerns in the market.

First-time buyers are still leading the charge in overall activity, L&G has said, with ‘first-time buyer/first-time landlord/non-owner occupier’ the fourth most popular search criteria used in September.

The ‘bank of family’ was also a dominant search criterion, with L&G’s bank of family report also revealing earlier this year than 47% of all homes purchased by buyers under the age of 55 received help from family.

Searches on behalf of borrowers looking for second residential mortgages grew by 8% in September, whilst those for ‘capital-raising mortgages’ also increased by 3%, and was the third most popular criteria in all searches.

The buy-to-let (BTL) sector also remains stable, with ‘first-time landlord’ searches recording the joint fourth most popular search term in September. Searches for BTL increased 1% from August, with those looking for ‘regulated BTL’ jumping 15% between August and September.

Managing director at L&G Mortgage Services, Kevin Roberts, said: “As interest rates settle into a steadier groove, it is encouraging to see a steady stream of borrowers making inroads into the property market, with the number of searches made on behalf of borrowers growing month-on-month since June.

“We have seen particularly high interest in shared ownership and interest-only products, a reflection of both the recent decision to maintain the base rate and longstanding affordability concerns in the market. While the bank of family has long been a major player in the property market, our data is also a robust reminder that family support isn’t always the only pathway to homeownership.

“Notwithstanding these positive pockets of demand, the market remains a complex puzzle to navigate for advisers, borrowers, and lenders alike. It is important that advisers continue to work on their business, as well as within it, particularly as we continue to battle economic uncertainty. For borrowers, it is crucial to remember the two key benefits of seeking guidance from a qualified mortgage adviser; access to products not available on consumer comparison websites, and the expertise gained from years of practice.”

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