Search activity in the mortgage market rose in Q1 2025, with brokers looking for options on complex cases, according to Knowledge Bank data.
Data revealed that there was an increase in searches linked to adverse credit, including unsatisfied county court judgements (CCJs), mobile phone arrears, and defaults over £500.
Brokers said more clients had credit problems and needed flexible lending.
The data also showed these criteria had eased in late 2024, but the latest figures indicated ongoing pressure from the cost-of-living crisis.
Data revealed that searches for buy-to-let (BTL) products also increased, especially for student lets and unencumbered properties.
Landlords who own properties outright were seen searching for new investment opportunities, reflecting ongoing activity in the sector.
Additionally, heightened search activity for bridging finance and development criteria pointed to landlords looking to grow portfolios or act on properties they already owned.
The demand for student accommodation remained strong, with Knight Frank reporting the UK was short about 580,000 student beds due to slower building, opening up chances for private landlords.
Notify’s platform continued to be a tool for brokers by allowing them to send cases to nine lenders at once, giving lenders access to more clients with specialist needs.
Will Rhind, vice president of advice and growth at Habito, said: “We’re certainly seeing the same trends reflected in the market right now.
“Cases involving credit issues, like mobile phone arrears or small defaults, are cropping up far more regularly, and clients are often unsure where they stand.
“The encouraging news is that more lenders are now taking a pragmatic view, often overlooking missed payments on communications and utilities, which means there are still plenty of options available for customers with imperfect credit histories.”
Rhind added: “On the buy-to-let side, landlord appetite hasn’t disappeared, it’s shifted.
“Investors are becoming more strategic, with unencumbered properties, student lets, and increasingly, holiday lets featuring more prominently in conversations we’re having at Habito.
“It’s a clear sign landlords are actively seeking ways to maximise yield and future-proof their portfolios in a changing market.”
He said: “Now more than ever, it’s important for customers to speak to an expert broker – ideally a fee-free one, like Habito.
“We can help them navigate the mortgage maze, understand their options, and find a solution that truly fits their circumstances.”
