Activity in the mortgage market is holding strong across the board despite wider economic uncertainty, the latest data from Legal & General has revealed.
According to data gleaned from Legal & General’s Ignite platform, searches for first-time buyers, first-time landlords, and non-owner occupiers grew by 13% in October, retaining its spot as the fourth most popular criteria used.
Interestingly, ‘Joint Borrower-Sole Proprietor’ has emerged as the second most popular search term in October, with searches growing by 7% month-on-month.
It is clear that reliance on wider support remains commonplace with first-time buyer enquiries, with searches for ‘gifted equity/concessionary purchases’ growing by 8% from September to October.
A reliance on the generosity of family and friends (hereafter referred to as the ‘Bank of Family’) has long been ingrained in the UK housing market, as confirmed in Legal & General’s Bank of Family report earlier this year.
The research – conducted in collaboration with the Centre for Economics and Business Research (CEBR) – concluded that Bank of Family lending has risen by 56% in the last seven years.
Families are set to support just under half (47%) of all homes purchased by buyers under the age of 55 this year.
Nonetheless, the impact of the high level of inflation in the UK remains pronounced.
Searches for borrowers with unsecured arrears, missed mortgage payments, and unsatisfied defaults each rose by 16%, 4%, and 2%.
Elsewhere, searches on behalf of borrowers with unsatisfied county court judgements rose by 30%. The importance of advisers assisting with these types of complex cases remains clear.
In a reflection of the challenging economic climate, demand for capital-raising mortgages continues to rise, with searches growing by 15% in October to become the third most popular criteria used.
Mortgage brokers, with their expertise in understanding the intricacies of these financial tools, have played a vital role in guiding homeowners as they explore opportunities to raise capital for various needs, including home improvements and debt consolidation.
Looking to the wider market, applicants with a VISA also continue to make their mark in the UK mortgage market – with ‘VISA’ remaining the most used criteria in October.
Searches related to ‘limited company buy to let’ and ‘Limited company income figures’ have also both experienced growth throughout October, with increases of 18% and 10% respectively.
Jodie White (pictured), head of mortgage products & transformation, Legal & General Technology, said: “It is fantastic to see advisers going above and beyond to find innovative routes to homeownership for buyers in response to the economic challenges.
“In particular, it is great to see searches on behalf of first-time buyers leading the way, with the Bank of Family of course maintaining a significant role in this.
“With advisers contending with complex client needs and circumstances, as well as the wider economic backdrop, it is vitally important that they are armed with the tech tools that the industry has to offer.
“At Legal & General, we continue to prioritise investment in this area, welcoming a wide range of lenders and products to Legal & General Ignite, alongside new functionality.
“We are passionate about saving advisers crucial time through good quality tech, that they can reinvest into the most important area; customer communication.”
