The buy-to-let (BTL) sector experienced an increase in broker criteria searches during November, following a 10% rise in searches for holiday lets.

The data, from Legal & General’s SmartrFit platform, also revealed that searches for ‘regulated’ BTL mortgages jumped by 59%, with increasing numbers of borrowers renting out their property to a relative.

As the Help to Buy scheme reached its final few months, L&G also highlighted that its November data revealed that buyers continued to search for alternative support. Criteria searches for products suitable for discounted market sale (DMS) schemes grew by 20% in November. Similarly, searches on behalf of borrowers using gifted deposits climbed by 7%.

With the cost of living crisis continuing to impact household finances, L&G stated that its data indicates a “large shift in priorities” in terms of borrowing options. November saw a 60% jump in criteria searches for interest-only mortgages, exceeding market averages. With energy bills rising, L&G also suggested this potentially contributed to a further 67% spike in searches for products that consider a property’s energy performance certificate (EPC).

Managing director at Legal and General Mortgage Services, Kevin Roberts, commented: “With affordability coming under pressure in recent months, we would naturally expect activity to level off and the market to soften towards the end of the year.

“At the same time, it’s been reassuring to see certain areas of the market forge ahead and outperform averages. The ongoing cost of living crisis is notably influencing this demand, with increasing numbers of borrowers opting for interest-only mortgages and greener homes.

“With Help to Buy soon becoming redundant, it’s equally important for borrowers to consider the alternative avenues at their disposal. While the Treasury’s extension of the mortgage guarantee scheme could offer a lifeline to many, advisers must be on hand to help borrowers source the best solution for their individual needs.”

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