Knowledge Bank’s monthly criteria index has identified numerous changes in broker criteria searches as they attempt to match their clients’ cases with lenders.
Knowledge Bank, the UK’s largest database of mortgage lending criteria, monitors the most common searches conducted by brokers as they place a client’s case.
In the residential category, searches for lenders accepting ‘Late or Missed Payments’ ranked third, while ‘Interest Only’ criteria returned to the top five, ranking third after a month’s absence.
These popular searches indicate that household budgets continue to tighten, and standard residential borrowers’ circumstances are changing for the worse.
In the equity release category, searches for ‘Remaining Term of a Leasehold’ and ‘Early Repayment Fees’ increased in popularity in April, suggesting ongoing financial uncertainty and borrower concern over penalties if rates drop and they want to switch from their current deal.
The self-build sector saw ‘Non-Standard Construction’ enter the top five searches, indicating innovation in building materials used for new properties. In fourth place was the search for self-build lenders who will ‘Lend in Scotland’.
Significant changes also occurred in the bridging sector, with searches for lenders accepting ‘Commercial Property’ entering the top five for the first time since January. In commercial product sourcing, searches for ‘Mixed Use Properties’ ranked third and returned to the top five after a four-month absence.
Nicola Firth, Knowledge Bank CEO, commented on the findings: “This relentless change demonstrates once again that brokers cannot rest on their laurels and that if it’s not lenders changing criteria daily, then it’s their clients’ profiles that are changing.”
Firth noted that mortgage brokers’ roles have never been more critical, with over 280,000 searches on Knowledge Bank during the first quarter of 2023, and technology playing a pivotal role in assisting brokers in finding a home for their clients’ loans.
“During the first quarter of 2023, there were over 280,000 searches on Knowledge Bank, and so the role of the mortgage broker has never been more important, and technology is playing a pivotal role in helping brokers find a home for their client’s loans,” she said.
