Mortgage brokers are currently working with numerous borrowers who have recently started new jobs, analysis from Knowledge Bank has indicated.

The firm’s latest criteria tracker results revealed that “time in employment” featured heavily in searches by brokers in February, both in the residential market and in the second charge sector.

Alongside working with those new to role, brokers were also searching for “missed or late payments” and “defaults – registered in the last three years” in the residential market. Despite more economic certainty in recent months, Knowledge Bank suggested that this shows the financial damage caused by the pandemic is still being felt by some borrowers.

Another trend that tracked across the residential and second charge sectors during February was “maximum age at end of term”. Brokers in the residential market have been consistently searching for maximum age since Knowledge Bank began tracking searches in July 2018. However, this was the first time the term has appeared in the most-searched terms in the second charge market since October 2021.

Knowledge Bank operations director, Matthew Corker, said: “There appears to be confidence returning to the jobs market and people feel confident enough to change roles. Some are moving sectors completely, perhaps as a result of the pandemic, and brokers are working with numerous clients who are new to role.

“Lenders’ criteria varies when it comes to time in employment. Some are happy to receive a written confirmation of the offer and the first months’ payslip. Others require any probationary period to be passed before they’ll consider the borrower.”

Elsewhere, Knowledge Bank’s data showed that “regulated bridging” continues to dominate searches in the bridging sector, with February marking the fourth consecutive month it was the most-searched term.

“Interest in bridging loans grew significantly in 2021, and the start of 2022 has seen attention in commercial property bridging loans increasing,” Corker added. “These may be for buying commercial units, similarly to a residential bridge, when a chain breaks. Or for refurbishments then either selling or refinancing onto a conventional commercial mortgage.

“The lending landscape has been evolving rapidly recently. The buy-to-let market in particular has been volatile, and with the Bank of England increasing base rate lenders will certainly continue to adapt.”

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