As the deadline for the Help to Buy Equity Loan Scheme approaches at the end of March, first-time buyers are continuing to push ahead with their purchases.
Legal & General’s SmartrFit tool has revealed that criteria searches for the scheme rose by 10% in February, while first-time buyer searches increased by 12% in the same month.
The new scheme is only available to first-time buyers, which is reflected in the data. For consecutive months, Visa has remained the most used criteria search for applicants, indicating the important role advisers play in securing foreign investment and the resilient nature of London’s housing market.
Foreign interest in the London area has grown in 2023, with criteria searches from Expat/EU Citizen in UK applicants rising by 9% in February. Foreign income applicants also increased by 12%.
However, rising living costs are still impacting mortgage applicants, with searches for applicants with a second job increasing by 19% and applicants with zero-hour contracts rising by 43%.
Missed mortgage payments also rose by 14%, while payday loans increased by 48%.
Jodie White, head of mortgage products & transformation at Legal & General Technology, emphasised the need for new technology-driven initiatives to support brokers and their first-time buyer clients. “Advisers will be key to supporting this segment of the market, but they also have a key role to play for other customers, such as existing homeowners who need to remortgage. To do this effectively, they need access to the right tools and tech,” she said.
