Legal & General (L&G) has reported that users of its SmartrFit platform completed more total affordability searches in January than in any of the final three months of 2022.

Amid rising searches for all criteria embedded into SmartrFit during January, L&G suggested the mortgage market is in “strong health”.

According to L&G’s latest data, more searches were made on behalf of buyers with visas than for any other criteria. “Visa” has been the most used search term since the start of October 2022 and has consistently ranked in the top two since January last year.

SmartrFit data also indicated that searches on behalf of portfolio landlords grew by 53% in January, while “joint borrower sole proprietor” slipped from the third to fourth most used search term. Applications using gifted deposits also remained popular, as searches for this search term similarly grew by 53%.

However, L&G also reported that its January data has reinforced that financial difficulty remains a pressing issue. Searches for applicants with an “arrangement to pay” increased by 85%, while those for applicants with unsecured arrears increased by 103%. Searches on behalf of applicants with unsatisfied defaults, debt management plans, and second jobs each grew by 140%, 165%, and 77%, respectively.

Head of mortgage products and transformation at L&G Technology, Jodie White, commented: “The total volume of adviser searches reaching its highest level since September is testament to the resilience of our industry and hard work of our talented professionals who keep the wheels turning.

“However, when you start to dissect the searches it soon becomes clear that while some pockets of demand, such as portfolio landlords, remain extremely strong, others, particularly those suffering financial difficulty, are faring much worse.

“Advisers are tasked with supporting the varied needs and circumstances of these customers as comprehensively and efficiently as possible. The more that our industry can digitise the mortgage journey, the more we will streamline operations, benefitting all parties.”

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