Mortgage criteria searches were dominated by niche areas in October, “reinforcing the importance of specialist products, lenders, and advisers”, says Legal & General.  

Data from the financial services group’s SmartrFit platform shows that searches for products suitable for discounted market sale schemes jumped by a quarter last month.   

It adds that joint borrower sole proprietor searches were the third most used criteria point in the month, which coincides with the deadline for applications for the Help to Buy Equity Loan scheme at the end of October.  

The group says interest from foreign buyers in the UK property market “remained strong throughout October”, with criteria searches on behalf of buyers with foreign income growing by 5%.   

Also, most adviser searches were made on behalf of applicants with a Visa, this came at the same time as sterling weakened, with the value of the pound hitting a thirty-seven-year low of $1.0899 in the final week of September. The pound is currently at $1.1803, on Monday morning.  

Research from the platform, also showed that criteria searches for retirement interest-only mortgages grew by 7%, which it says could be an “indication of the growing reliance on gifted deposits following the end of the flagship Help to Buy scheme, or customers exploring options after the end of their interest-only mortgage.   

“Criteria searches that consider a property’s energy performance certificate also climbed by 6%, as consumers faced October’s energy price cap rise.”  

Elsewhere, searches for consumer buy-to-let products rocketed by 36%, which the group says were “likely boosted by the recently tightened criteria in this area”.   

Last month also saw a 13% jump in criteria searches for mortgages suitable for high-rise flats. While many tenants chose to relocate to more rural areas at the height of the pandemic, inner-city property markets are now being boosted by their return.   

Legal and General Mortgage Services head of mortgage products & transformation Jodie White says: “The mortgage market has experienced an array of recent political, social, and economic changes, all of which are reflected in today’s data.   

“One of the major changes is the upcoming end of the long-running Help to Buy scheme. Many prospective buyers could benefit from consulting an adviser to explore their alternative paths to homeownership and this will likely be an important focus for brokers from now on.   

“Elsewhere, other buyers are contending with factors such as the stipulations around Visas, discounted market sale schemes, and buy-to-let product criteria.  

“With COP27 in full swing [which ended yesterday], it is also reassuring to see that the mortgage market is committed to greening its output. Lenders and brokers have worked hard to provide green options and educate consumers on the choices available to them.   

“Consumers are increasingly conscious of their energy efficiency, and this is almost certainly going to become a more important part of the homebuying process, as evidenced by the 6% monthly rise in criteria searches for energy performance certificate ratings during October.”