Data sourced from Legal & General’s recently launched Ignite platform has revealed an increase in searches for interest-only mortgages as borrowers look to reduce monthly costs.
Interest-only mortgages were the most common search term in June, increasing by 53%, followed by a 40% increase in searches for Help to Buy.
The scheme closed on 31st May, but Legal & General said this showed ongoing demand for similar schemes back by the Government.
The data found that despite rising rates, the mortgage market was showing strong signs of activity, particularly within buy-to-let (BTL) and among overseas buyers, and in transactions relating to ex-council homes.
Legal & General saw increased demand from first-time buyers in June, with an increase of 14% in relevant searches, though searches relating to affordability (+21%) and minimum income requirements (+17%) also rose.
In the private rental sector, multi-unit freehold blocks (MUFBs) saw an increase in searches of 32%, while rental income searches rose by 38%.
Top slicing rose by 49% and regulated buy-to-let by 15%.
Searches in relation to right to buy and right to acquire increased by 17% in June, while searches regarding ex-local authority properties increased by 29%.
Terms relating to overseas customers increased by 16%, and those relating to customers with permanent right to reside or indefinite leave to remain rose by 38%.
Jodie White (pictured), head of mortgage products and transformation at Legal & General Technology, said: “It’s clear that the mortgage market remains robust despite ongoing issues with affordability, rising interest rates and stubborn inflation.
“It’s positive to see that market activity is still being driven by specific sectors including buy-to-let, overseas buyers, and by increased demand for particular property types.
“During this time, it’s vitally important that advisers implement new technologies to best manage demand for mortgage advice across various sectors.
“Advice is incredibly important right now and advisers have a crucial role to play supporting buyers and ensuring they have access to the full range of options available to them.
“The recent launch of the enhanced Legal & General Ignite platform is another step towards joining the human expertise of advisers with the power of data insights and technology.
“By implementing this technology across the industry, advisers will be able to save time on each case which can be spent improving customer outcomes.”
