‘Maximum age at end of term’ was the most searched term by brokers in the residential sector in June, Knowledge Bank data has shown.

The UK’s largest database of mortgage lending criteria tracks the most frequent searches performed by brokers as they look to place a client’s case. During the first quarter of 2023, there were over 280,000 searches on Knowledge Bank and over five million criteria searches have been carried out to date.

The ‘maximum age at end of term’ topped the search term in the residential sector, as brokers and lenders look to explore new ways to help borrowers extend mortgage terms or move to interest-only options on a short-term basis.

This follows the Bank of England raising interest rates to 5% last month in an attempt to curb inflation.

Furthermore, this increase in searches was predictable following the chancellor’s recent crisis meeting with banks and building societies, concluding in an agreement to assist borrowers.

This is expected to allow for some breathing space for families and the 400,000 households due to come off fixed rates between July and September, although it is likely to increase the number of calls from borrowers looking for help from brokers or lenders.

June also saw an increase in the number of searches for lenders who can assist homeowners with ‘capital raising for debt consolidation’, underpinning the financial burden carried by many households. ‘Interest-only mortgages’ also came into the top five searches in the residential sector for the first time since June 2022.

In the equity release category, there was a notable resurgence in the number of searches for ‘leasehold remaining term’, ‘early repayment charges’ and ‘ex-local authority houses’, suggesting that individuals who bought their council houses two to three decades ago mighty be exploring their options. This potentially shows that more people are looking to explore equity release as a way to ease their financial situations, as pensions are no loner sufficient.

Chief executive officer of Knowledge Bank, Nicola Firth, said: “Amidst the mounting financial challenges faced by borrowers, many are desperately seeking assistance with their mortgage terms and additional borrowing for debt consolidation.

“Brokers are exploring options to ease their clients’ financial situation. For borrowers transitioning from a fixed rate, the prospect of moving to a significantly higher rate is particularly onerous. Broker searches on Knowledge Bank evidence that borrowers are resorting to every possible means to find solutions for their clients. Considering ways to extend mortgage terms, exploring second charge interest-only options, and using second charges to raise much-needed capital for debt consolidation.

“The crucial role of brokers in assisting both existing and prospective borrowers has never been more important. At the same time, brokers are encountering unparalleled challenges in their efforts, as they navigate rates that are being pulled every few days, and an extensive array of criteria to locate a lender capable of providing assistance. The task of finding a lender who can offer the necessary help has become increasingly demanding.”

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