Knowledge Bank has reported an increase in the number of mortgage brokers searching for “time in current employment” for both residential and second charge mortgages.
New data from the criteria search specialist indicated that brokers are seeing more clients looking for mortgages that do not require them to have been in role for a significant time.
This suggests a fall out from the end of the furlough scheme and increasing redundancies, Knowledge Bank suggested, leading to a surge in the number of borrowers having started new jobs and moved roles in the past six-months.
The findings, from Knowledge Bank’s latest mortgage criteria tracker, provide an indication of the mortgages that lenders will issue over the next few months.
Although “furloughed workers” has dropped out of the five most-searched terms, the term “defaults – registered in the last three-years” has now featured in both May and June. It was also the second most-searched term in June, which Knowledge Bank suggested shows there are a growing number of borrowers defaulting on payments.
In the second charge market, June also saw brokers searching for “capital raising for debt consolidation”, which also indicated the financial stresses that some families are facing, as they turn to a second charge mortgage in order to clear debts.
“The news that more people are starting new roles is certainly a positive,” commented Knowledge Bank operations director, Matthew Corker. “These may be fuelled by the pandemic, which has shifted priorities and increased opportunities in some industries due to flexible working.
“However, the increasing number of searches for ‘defaults’ and ‘capital raising for debt collection’ is a concern for the economy. Although we have moved passed the stamp duty deadline, the appetite for moving does not look set to dissipate any time soon.”
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