‘Furloughed workers’ and ‘Soft footprint at Decision in Principal (DiP) stage’ were among the top five searched criteria by mortgage brokers in November, according to Knowledge Bank’s latest monthly criteria index.

The criteria search specialist found that searches had surged as a result of Chancellor, Rishi Sunak, announcing an extension to the job support scheme on 5 November.

Knowledge Bank suggested that lenders reacted quickly, with over 30 updates to criteria in just two days recorded by Knowledge Bank in its ‘Furloughed Workers’ category. However, most lenders have tightened criteria for those who had been furloughed at any time, making it harder for borrowers to buy or to remortgage.

For the first time in over a year, the term ‘Soft footprint at DiP stage’ was also among the top five most searched for criteria by brokers. Knowledge Bank suggested this was potentially as a result of brokers looking to apply to multiple lenders due to tightening criteria, or because brokers may also be looking to multiple lenders so that clients can secure a purchase in time for the stamp duty holiday.

In the bridging category,’First-Time Bridgers’ entered the top five most searched for terms, for the first time ever. Knowledge Bank also indicated this could be a result of the stamp duty holiday, which is due to end on 31 March 2021, as buyers look to bridging loans to get their purchase over the line.

“The only constant at the moment is change,” said Knowledge Bank lender relationship manager, Matthew Corker.

“With the furlough scheme back, discussions around an extension to the stamp duty holiday and record numbers of mortgage approvals, the property sector continues to move at a rapid pace.

“Some trends are continuing, with max LTVs again being a hot topic. Lenders are responding and in November, many LTVs were gradually increased back to pre-COVID levels. However, an increase in new broker searches such as soft footprint DiP and first-time bridgers shows how the market is constantly changing.”

The latest search data also revealed that ‘Maximum LTV / Loan to Value’ was the top searched criteria in second charges, self-build, and bridging, and was also the second highest searched in the commercial sector.

Knowledge Bank said that this trend illustrates lenders’ criteria is still tight and that borrowers are looking to capitalise on the stamp duty holiday, even if they don’t have a 15% deposit.

“Lenders are constantly adapting criteria to keep up with the evolving market,” Corker added. “It is now physically impossible for any mortgage broker to keep all the different criteria in their heads.

“So, it is now more important than ever for brokers to use a comprehensive criteria search system to ensure they can provide their clients with best advice – and evidence that they have done so.”

Share Story: