Knowledge Bank data shows searches for interest-only mortgages has made a come-back, following the chancellor’s introduction of the Mortgage Charter and the fourteenth successive rise in the Bank of England base rate.

What is less clear is whether there is a similar uplift in ISAs or endowment policies to pay these mortgages off.

Knowledge Bank suggest that iIn the rush to save pennies now, perhaps there is not. In which case, there may be a switch back to capital and repayment mortgages in a few months’ time after the six-month hiatus allowed by the Mortgage Charter.

The other new entry in the top five searches for residential criteria over July was ‘Joint Borrower, Sole Proprietor’. Following a two-month pause, this is once again a key search term for brokers.

It joins the persistent trends of ‘Missed or Late Payments’ and ‘Maximum Age at End of Term’, which have been the top two, highest-trending residential searches throughout 2023.

There is increasing evidence that many people are extending their mortgage terms to make their monthly payments more manageable.

The search for new loans that will accept people with ‘Missed or Late Payments’ also backs up recent figures from UK Finance that arrears are on the rise.

New in the commercial sector in July is ‘Commercial Owner Occupier’. This indicates an increased number of business owners are considering ways to buy their own commercial office or premises, perhaps to save on rising rental costs.

The search for ‘Commercial Property’ is also trending in the bridging category. As there appears to be something of an exodus from the residential buy-to-let market, according to Knowledge Bank, it could be that some more experienced investors are looking to more tax efficient commercial property instead, to refurbish and let out or sell on.

While some are departing the buy-to-let sector, others are still keen to join its ranks. Searches for ‘No Requirements to be a Homeowner’ and ‘First-Time Landlord’ indicate that brokers are actively seeking ways to help clients get on the property ladder, especially those who cannot meet the income requirements for their own home.

Knowledge Bank CEO, Nicola Firth comments: “Brokers finding creative solutions for residential borrowers is definitely a theme, with many borrowers desperately seeking assistance with their mortgage terms and payment structures. Others, not put off by these challenges are still exploring ways to buy their first property, be it with family support or by trying to buy a rental instead to give them a foot on the housing ladder.”

She adds: “In the month that saw the launch of Consumer Duty, the key role of brokers in assisting both existing and prospective borrowers has never been more important.”