Broker searches for ‘capital raising’ mortgages have been on an upward surge this year and claimed third spot as the most sought-after criteria in Legal & General’s SmartrFit lending tool.  

These loans, which allow homeowners to remortgage their property to release funds for other purposes, have risen in search popularity from sixth in January, to fifth in February and third in March and April.  

“It suggests more borrowers are considering their financial options during the ongoing cost of living crisis,” the lender says.  

It points out: “This is perhaps an indication that more borrowers are looking to borrow against their property. Historically, this extra borrowing has been used by many homeowners to finance home improvements.”  

The top search in April remains ‘visa,’ which has held onto poll position since October, indicating that “the UK market remains an appealing destination for overseas borrowers”.  

‘First-time buyer’ was the second most used search criteria last month, retaining its position from March.  

The poll adds: “There was also some indication that many FTBs are continuing to rely on the Bank of Mum and Dad to fund their purchase plans.   

“Searches concerning guarantors and family assistance increased by 18%, while searches from those with deposits from a loan rose by 10%.”  

The study adds that many potential buyers are “clearly looking to get more for their money” with searches for ‘discounted market sale’ products jumping by 37% last month.  

Legal & General head of mortgage products & transformation Jodie White says: “This month’s figures are a great insight into the kinds of products that borrowers are currently looking for and the consistent rise in searches for capital raising mortgages is a clear example of how the market is continuing to evolve.”