Mortgage searches carried out by brokers in October were dominated by “niche criteria”, data from Legal & General’s SmartrFit platform has indicated.

L&G said it analysis has highlighted the importance of specialist products, lenders, and advisers.

According to the data, searches for products suitable for discounted market sale (DMS) schemes grew by a quarter (25%) in October alone. ‘Joint borrower sole proprietor’ was the third most used criteria point of the month, coinciding with the deadline for applications for the Help to Buy Equity Loan scheme on 31 October.

The interest of foreign buyers in the UK property market remained strong throughout October, with SmartrFit criteria searches on behalf of buyers with foreign income growing by 5%. Last month, the most adviser searches were also made on behalf of applicants with a VISA, with this trend in particular coinciding with the weakened value of sterling and the value of the British Pound hitting a 37-year low in the final week of September.

Head of mortgage products and transformation at Legal and General, Jodie White, commented: “The mortgage market has experienced an array of recent political, social, and economic changes, all of which are reflected in today’s data. One of the major changes is the upcoming end of the long-running Help to Buy scheme.

“Many prospective buyers could benefit from consulting an adviser to explore their alternative paths to homeownership and this will likely be an important focus for brokers from now on. Elsewhere, other buyers are contending with factors such as the stipulations around VISAs, DMS schemes, and buy-to-let (BTL) product criteria.”

Searches for consumer BTL products rocketed by over a third (36%), which L&G said was likely boosted by the recently tightened criteria in this area, while searches for retirement interest only (RIO) mortgages also grew by 7%.

Criteria searches that consider a property’s Energy Performance Certificate (EPC) also climbed by 6% last month, as consumers faced October’s energy price cap rise.

“With COP27 in full swing, it is also reassuring to see that the mortgage market is committed to greening its output,” White added. “Lenders and brokers have worked hard to provide green options and educate consumers on the choices available to them.

“Consumers are increasingly conscious of their energy efficiency, and this is almost certainly going to become a more important part of the homebuying process, as evidenced by the 6% monthly rise in criteria searches for EPC ratings during October.

“This month’s data shows the sheer volume and array of new and innovative products currently available to borrowers. In such a rapidly changing market, the value of mortgage advice has never been so high.”

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