Homebuyers are being stretched to their “financial limits as a result of sky-rocketing property prices”, according to data from Knowledge Bank.

The criteria search specialist says brokers searched for ‘maximum loan to value’ “in their droves”, in its June criteria tracker, which covers over 120,000 criteria from more than 250 lenders since 2016.

It adds, the ‘maximum LTV’ criteria is either the most, or second most-searched across the second charge, equity release, self-build, bridging and commercial mortgage markets.

The firm says: “The range of sectors clearly illustrates the growing need for people to borrow the maximum they can, no matter how old or young.

“Interest also didn’t seem to be affected by whether people were buying property to live in or buying in a business capacity.”

UK house prices rose by 7.6% on an annual basis in July, leaving the average house at £261,221, according to last week’s index from Halifax.

This follows annual growth of 8.8% in June and 9.6% in May.

The criteria search firm says, in the second charge market brokers searching for ‘capital raising for home improvements’ was the third most popular search.

It says: “Perhaps as a result of the extended period people have spent at home, or the shift to home working, many people are now clearly attempting to renovate.”

In the residential market, the second and third most-searched terms are also related to economic hardship.

The data group says: “While the furlough scheme and mortgage payment holidays have undoubtedly supported millions, brokers are still searching for ‘missed or late payments’ [second] and ‘defaults – registered in the last three years’ [third] as some continue to struggle financially.”

It adds that searches for ‘adverse credit’ in the bridging sector were the fourth most popular search in this sector, and “may be of concern to some, as the sector has in the past had issues regarding providing finance to those who cannot get a loan or mortgage elsewhere”.

The research firm adds that country living also appears to be in vogue, as for the second month in a row ‘barn conversion’ registered significant interest from brokers, coming as the third most popular search in the self-build market.

It says: “This may be linked to the shift away from city living, with rural areas registering significant interest since the pandemic began.”

Knowledge Bank operations director Matthew Corker says: “Although those in the residential market are definitely impacted by the spike in property prices, maximum LTV is less of an issue than in other sectors.

“Residential 95% LTV mortgages have returned in force, however, the dramatic increase in property prices is impacting affordability, and many borrowers are looking to stretch terms to lower monthly repayments leading to the rise in searches for just how old someone can be at the end of their mortgage term.

“While there have been record numbers of house-moves in the past few months, there are also a significant number of people looking to redevelop existing properties, and even build new ones.

“The pandemic has changed the way many of us view our home, and also the use of office space and commercial property, and these changes are resulting in renovations and redevelopments.”