Criteria searches by mortgage brokers reflected another month of change in December, Knowledge Bank has reported.

The latest data from Knowledge Bank’s monthly criteria index, which track the most common searches performed by brokers as they look to place a client’s case, saw the top searches across several lending categories again differ from the previous month.

The index showed that in the residential sector, the most popular criteria searched for was “maximum age at the end of term” while the search for lenders allowing “joint borrowers, sole proprietor” jumped to second place.

“Self employed with one year’s accounts” dropped to third place, while the search to place clients who have had “missed or late payments” remained in the top five for the fourth month in a row. Knowledge Bank said the searches reflect the impact of the cost of living crisis still being felt by borrowers.

The buy-to-let (BTL) sector also saw a shake up in the top five searches, with “lending to limited companies” rising to the top spot, pushing “first-time landlords” down to second place. Other popular BTL searches were for “minimum income required” and the requirement for the “borrower to be a homeowner”, along with “first-time buyer”.

Knowledge Bank CEO, Nicola Firth, said: “The year ended as it started with a raft of changes across all lending types. Advisors have had a tough year with processing and completion times being extended which slowed commission payments and, in some cases, meant that mortgage offers ran out and had to be re-brokered.

“In a period of such instability and change it is even more crucial that brokers avoid declined applications where clients think they qualify for a product only to fail the lender's criteria requirements.

“This is hugely frustrating and completely unnecessary if a criteria search has been performed prior to a product search. Early indications are the 2023 will continue to be a lending landscape of great uncertainly and so brokers need to use all the tools at their disposal.”

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