Broker searches for homeowners looking for joint borrower sole proprietor (JBSP) mortgages climbed by 17% in March, according to new research from Legal & General Mortgage Club’s SmartrCriteria tool.
The mortgage club said the rise suggests that borrowers are relying on financial support, with activity in the buy-to-let (BTL) market reinforcing this trend as searches for gifted equity on behalf of landlords jumped by 38%.
L&G Mortgage Club’s SmartrCriteria tool tracks product searches from over 8,000 advisers, shedding light on the purchase and remortgage trends witnessed by brokers across the industry.
The data also shows that demand from buyers continued despite rising living costs and soaring house prices, particularly in the holiday let sector. Searches for holiday lets increased by 24% in March, implying that the sector is primed for continued growth, while the BTL market also showed strong demand as first-time landlords drove activity, with searches rising by 23%.
Mortgage searches on behalf of borrowers with complex finances also continued to grow between February and March. The SmartrCriteria data found that searches by advisers for lenders willing to accept borrowers with an unsatisfied default climbed by 46% over the last month, while searches for lenders that ignore communications defaults, such as missed telephone bills, also grew by 65% in March.
“With inflation taking its toll on household expenses, the latest findings of our SmartrCriteria tool reinforce the need for advice, as borrowers look to find a mortgage that suits their changing circumstances,” said L&G Mortgage Club head of broker and propositions, Clare Beardmore.
“The current squeeze may be denting affordability, and, in turn, prompting borrowers to rely on financial support from their loved ones to minimise their borrowing costs.
“Meanwhile, certain borrowers with more complex circumstances are looking to get on the property ladder, or refinance following the pandemic, and will need the guidance of advisers to find alternative mortgage solutions.”
The UK housing market in 2024
The performance of the UK housing market in 2024 has largely exceeded many people's expectations, although challenges remain for first-time buyers due to house prices increasing and a testing rental market for many. Regional disparities, such as the North-South divide, also continue to influence housing accessibility and affordability for many buyers in pockets of the country.
Intergenerational lending
MoneyAge News Editor, Michael Griffiths, hosts Family Building Society BDMs, Amar Mashru and Arif Kara, to discuss intergenerational lending and explore ways that buyers can use family income to help increase their borrowing capacity when applying for a mortgage
Helping landlords make their cash work harder
MoneyAge Editor, Adam Cadle, talks to Family Building Society BDMs, Arif Kara and Nathan Waller, about the resilient BTL market, the wide variety of landlords that Family Building Society caters for, and how niche products like an Offset mortgage can help improve cashflow.
© 2019 Perspective Publishing Privacy & Cookies
Recent Stories