Adviser searches for lenders willing to accept borrowers with defaults rose 157% in January, according to Legal & General Mortgage Club (L&G MC), as did options suitable for those with arrears and missed mortgage repayments, which climbed 77% and 90% respectively.

The findings come as the cost-of-living crisis in the UK continues to bite. Searches for clients with debt management plans also increased, by 134%.

“There is still healthy demand in the mortgage market, but there are also signs that the cost-of-living squeeze is beginning to drive some borrowers to remortgage or find alternative mortgage solutions that help them better manage their finances,” says L&G MC director Kevin Roberts.

“Advisers will have a critical role to play in helping many of these borrowers to secure a new fixed rate mortgage or find a lender that is willing to support those with more complex circumstances,” he adds.

Overall search volumes by advisers increased 80% in January, indicating demand amongst first-time-buyers (FTB) was strong.

FTB searches by advisers rose by 91%, compared to December, as did searches on behalf of landlords entering the market for the first time, which increased 63%.

Nevertheless, searches for clients with gifted deposits increased 88% over the month, while  searches for landlords with gifted equity jumped 82%.