The cost-of-living crisis is forcing borrowers to use their brokers to “remortgage, get on the housing ladder, or even for release equity to help them manage their debts,” according to Knowledge Bank.
‘Maximum age at end of term’ was the most used phrase used in broker residential searches, the search firm’s May Criteria Activity Tracker shows.
It says this “persistent trend linked to the maximum age a borrower can be at the end of the mortgage term, further supports the data which tells us the general population are getting onto the housing ladder later”.
‘Missed or late payments’ was the second most used residential search term.
Over the past three months, there has been a surge in brokers looking up the criteria for ‘Joint borrower, sole proprietor’ mortgages, which claimed third spot for residential searches.
The study says: “This is usually parents or grandparents helping their children get a foothold on the property ladder.
“Earlier this year, over half of the Londoners who took part in a Zoopla survey admitted they were relying on their parent’s wealth to get them on the property ladder.”
The firm says it finds “further evidence of the challenging market” in its landlord search data.
It says the ‘No requirement to be a homeowner,’ term was third in broker’s buy-to-let searches, which “shows some are looking at alternatives ways to purchase and get on the ladder”.
The report notes that for the first time since last October, there was an increase in demand among ‘holiday-let’ searches, which came fifth in broker’s buy-to-let searches last month.
It says: “There has been a change in the demographic of those taking up staycations. Landlords are as ever, finding ways to maintain good affordability across portfolios.
“Add to this the impending planning permission rule changes, the market could see a rush in applications for holiday lets.”
The study adds that searches in the second charge sector “in particular, reveal a notable increase in people looking for answers to their financial challenges”.
“New search entries relate to customers looking for additional finance while having arrears or defaults.”
Also, there was a rise in searches for lenders who will accept people with ‘Debt Management Plans’, which was fourth in broker’s second charge searches.
The top search in this category ‘Maximum LTV,’ the study says, “indicates that clients are actively reaching out to brokers to help them manage their finances by securing them additional borrowing”.
Knowledge Bank chief executive Nicola Firth adds: “As borrowers face the burden of increasing living expenses and often rising debts, many are crying out for help.
“Others are being hit especially hard if they are coming off a fixed rate mortgage at sub-2% and facing the prospect of moving on to one that could be three times higher.
“Despite this, it is clear that some are trying every means possible to get on the housing ladder, from taking a ‘Joint borrower, sole proprietor’ mortgage, to extending payments over a longer term and even looking at buying a rental property before their own home.”
