June saw a rise in mortgage brokers carrying out criteria searches for “maximum LTV”, new analysis from Knowledge Bank has revealed.

The criteria search specialist’s latest Mortgage Criteria Tracker recorded that “maximum LTV” was either the most, or second most-searched term across the second charge, equity release, self-build, bridging and commercial mortgage markets.

Knowledge Bank suggested the trend shows that a significant number of people are “stretching their financial limits” as a result of “sky-rocketing property prices”.

The firm said that this range of sectors illustrates a growing need for people to borrow the maximum they can, regardless of age and whether people are buying property to live in or in a business capacity.

In the residential market, Knowledge Bank revealed the second and third most-searched terms related to economic hardship. While the furlough scheme and mortgage payment holidays have supported millions of people across the UK since the start of the pandemic, the latest data showed that brokers are still searching for “missed or late payments” and “defaults – registered in the last three years” as some continue to struggle financially.

Searches for “maximum age at end of term” and “income multiple used for affordability assessment” also indicated that rising house prices have stretched finances for those in the residential market.

Knowledge Bank operations director, Matthew Corker, commented: “Although those in the residential market are definitely impacted by the spike in property prices, maximum LTV is less of an issue than in other sectors.

“Residential 95% LTV mortgages have returned in force, however the dramatic increase in property prices is impacting affordability, and many borrowers are looking to stretch terms to lower monthly repayments leading to the rise in searches for just how old someone can be at the end of their mortgage term.

“While there have been record numbers of house-moves in the past few months, there are also a significant number of people looking to redevelop existing properties, and even build new ones. The pandemic has changed the way many of us view our home, and also the use of office space and commercial property, and these changes are resulting in renovations and redevelopments.”

Corker added: “The latest results from our criteria tracker suggests builders will be busy in the coming months, with renovation and building projects of high interest.”

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