Demand for capital raising mortgage options remained high through August and September, according to new data from Legal & General Mortgage Club’s SmartrCriteria tool.

Criteria searches for capital raising mortgages saw a rise of 18% overall, with L&G Mortgage Club also confirming that a capital raising mortgage was the second most sought after criteria point in September, rising from sixth place in August.

The mortgage club also found that demand for lenders willing to consider applicants with credit impairments continued to fall month-on-month throughout Q3. In August, the SmartrCriteria tool recorded a 9% decrease in demand for products suitable for borrowers with debt management plans, and an 8% fall in those for customers with unsecured arrears.

Searches on behalf of borrowers with unsatisfied defaults and those employed via contract work also fell by 9% and 8% respectively. In September, demand for products suited to borrowers with satisfied defaults and unsecured arrears dropped by a further 10% and 7%, the figures showed.

The SmartrCriteria tool also revealed that searches made on behalf of international buyers grew by 160% in August. L&G suggested this was consistent with a 107% jump in searches conducted for international buyers with a visa. The rise in interest from international buyers has coincided with easing international travel restrictions and slowing domestic purchase activity in the wake of the end of the stamp duty holiday.

L&G Mortgage Club director, Kevin Roberts, said that a wide range of of factors driving demand in the mortgage market was “reassuring”, following the end to the stamp duty holiday in August.

“However, the crisis has in many cases complicated applicants’ financial circumstances and advisers must keep this front of mind,” Roberts warned.

“Against this complex backdrop, the value of both mortgage advice and technology remains clear. Advisers will need to embrace technology to automate processes such as affordability calculations and other administrative tasks, to usher in efficiency gains and feel confident in tackling these intricate cases.

“With purchase activity expected to return to its pre-pandemic level in the coming months, in light of the end of the stamp duty holiday, now is the time to invest in mortgage technology and prepare for this new and exciting era of the market.”

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