Knowledge Bank has reported that of the 1,500 criteria updates on its system in July, almost 40% were in the buy-to-let (BTL) sector. 

The residential sector come in at second place with 30% of the month’s changes followed by bridging with 23%. 

The most searched-for criteria within the BTL sector was once again lending to limited companies followed closely by brokers searching for lenders who would accept first-time landlords. 

Knowledge Bank says it appears the housing market remains an attractive home for long-term investment even if potential landlords are not already on the housing ladder themselves.  

Criteria searches in the residential sector continue to focus on stretching out loan terms, according to Knowledge Bank, with brokers favourite search once again being for the maximum age at the end of the term. 

However, the main change in residential criteria is the rising popularity of searches for lenders accepting self-employed borrowers with just one year’s accounts. 

As a result of covid and lockdowns, an increasing number of people have chosen or been forced down the self-employed route and this looks to be a sector on the rise.  

Almost a quarter (23%) of all criteria changes in July were in the bridging sector and once again brokers top search was for lenders offering regulated bridging to their clients. 

With inflation expected to rise further and interest rates certain to follow, Knowledge Bank explains that clients are keen to secure properties as soon as possible and take advantage of the remaining lower rate deals. 

The latest data shows that for the first time since February, brokers have been searching for lenders accepting heavy refurbishment suggesting that bigger projects are being undertaken.  

Although there were fewer criteria changes in the commercial sector than others in July the search for products allowing a commercial owner-occupier entered the top five for the first time in three months. 

The top search was for lenders offering commercial loans on semi-commercial properties suggesting that the reshaping of the high street and retail versus residential continues at a pace.  

Knowledge Bank chief executive Nicola Firth says: “The standout sector for change in July was BTL and a raft of product and criteria changes flooded in each day.”

“There has also been a huge shake-up in the bridging sector which saw almost a quarter of all criteria changes in the month. Bridging lenders continue to innovate and it is one of the most fluid sectors in the market. This makes it highly adaptable to political and economic change and brokers need to keep a close eye on changes which are happening daily.  

“With reports that completion times becoming longer and longer, coupled with rates rising, it’s imperative that brokers don’t waste a second on failed applications and know at the outset which lenders will accept their clients by checking criteria conditions prior to a product search.”