The Analysis Comment
Broker searches show shift
Research shows that consumer searches are evolving in terms of their interests
Nicola Firth Chief executive, Knowledge Bank
As the Equity Release Council’s Spring 2019 Market Report announced a seventh consecutive annual increase for the sector, our criteria activity tracker highlighted a shift in broker searches regarding equity release. Searches for lenders that allow houses of multiple occupation, come into the top five for the first time in the buy-to-let sector. Our criteria-activity tracker has revealed
brokers’ top searches in March 2019. As the largest database of mortgage-lending criteria held anywhere in the UK, the monthly criteria index reveals the searches brokers perform prior to mortgage product sourcing. Tenure becomes the most searched criteria
category within equity release for the first time in the criteria index. Interestingly the top searches within equity
release have shifted in recent months from factors affecting the loan to considerations relating to the property itself. Brokers have also been interrogating the
data for lenders who will consider timber and non-standard construction in addition to properties with an annex or outbuildings. Within the buy-to-let sector, searches for
Residential-loan searches in March continue to relate to the needs of older borrowers with three out of the top five categories relating to a borrowers age
lenders who will allow first-time landlords once again takes the top spot and, with continuing uncertainty surrounding alternative investment choices, bricks and mortar seems to be offering an attractive option. Additionally, within buy-to-let searches for lenders that allow houses of multiple occupation breaks into the top five for the first
time. This search has been featured in the top ten multiple times but has not been one of the top five searches since we started the index in July 2018. Anecdotal evidence suggests that changes
to rules surrounding HMOs is leading brokers to delve deeper into this area. Residential-loan searches in March
continue to relate to the needs of older borrowers with three out of the top five categories relating to a borrower’s age. The most popular searches performed by
mortgage brokers in March included those for lenders who offered the most generous criteria regarding the maximum age at the end of the mortgage term. As we head into the second quarter of 2019,
the landscape for brokers advising clients continues to be more and more complicated. Everyone in the housing market is reacting
to external financial and competitive forces within a period of unprecedented change with Brexit, and mortgage and loan providers are no exception. There are daily changes to both products and their underlying criteria so the task
facing brokers in delivering advice is harder than ever. However, the reality for brokers is that borrowers are unaware or unconcerned as long as they can be paired with the right product from the right lender. This is why technology is crucial in helping brokers find the right product the first time. CCR
Top five searches performed by brokers on Knowledge Bank during March 2019: Residential Buy-to-let
1 Maximum age at end of term First-time landlord 2 Self-employed: one year’s accounts Lending to limited firms 3 Maximum age at application
Requirement to be a homeowner
4 Help-to-buy equity loan scheme
5 Capital raising for debt consolidation
12
Houses of multiple occupation (HMO First-time buyers
Second charge Maximum loan to value
Equity release Tenure
Capital raising for debt consolidation Timber-framed construction Mortgage or secured-loan arrears or defaults
Non-standard construction
Debt-management plan: ongoing/current
Capital raising – home improvements
www.CCRMagazine.com Ex-local authority houses Property with an annex, outbuildings, land, or acreage May 2019
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