Borrowers and lenders are continuing to be challenged in the financial landscape, Knowledge Bank has said.
In its September criteria index, the bank has said that “emerging trends suggest that brokers are exploring new strategies to navigate economic uncertainty and find solutions for their clients”.
In the residential sector, ‘maximum age at end of term’ continued to be the most searched term by brokers, with Knowledge Bank stating that this underlines the industry’s caution around lending to older individuals, with possible concerns about repayment affordability as applicants get closer to retirement.
‘Lending to limited companies’ remained the top search term in the buy-to-let market, a trend that the bank said has been consistent throughout the year, as portfolio landlords continue to structure purchases through a corporate entity whilst it presents tax advantages and more favourable mortgage options.
The search term ‘joint borrower, sole proprietor’ has seen a surge in the residential sector over the past three months, indicating that brokers are still looking for creative solutions to handle mortgage affordability.
Self-build mortgages have also been a point of focus, with a range of search terms month-to-month. As the structure of self-build mortgages is to release funds in tranches throughout a project, this likely makes them an attractive option for those looking to manage costs during the construction process.
‘Minimum loan amount’ and ‘maximum LTV’ were the most searched terms by brokers for commercial property sector. Knowledge Bank suggested that the market is both cautious and opportunistic, as investors look to navigate a complex financial landscape.
Chief executive officer at Knowledge Bank, Nicola Firth, said: "The criteria searches we're seeing reflect a population that is having to adapt to a rapidly changing financial economy.
"Whether it's through new mortgage strategies or maximising investment opportunities, it's clear that both brokers and their clients are having to think more creatively and act more strategically than ever before."
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