This is verdict of Knowledge Bank after the latest analysis of its criteria database revealed, once again, ‘Covid-19 temporary maximum LTV restrictions’ was in the top search results by brokers in October.

This is the sixth consecutive month this search criteria has appeared in the ‘top five’ and is a reflection of the impact the pandemic is having on the housing market as people prepare to face living with Covid-19 for the long-term, Knowledge Bank said.

Matthew Corker, lender relationship manager at Knowledge Bank, said: “The bottom line here is that people are desperately looking to get onto the property ladder.

“While there is much news about lenders returning to the market and introducing new products, we are already seeing signs that some products may be pulled in light of the second national lockdown as lender appetite for risk is reduced.

“The unknown impact of a second national lockdown on employment and the wider economy is causing panic in the housing market and this is putting buyers under an increasing amount of stress.”

Stretching the term

Knowledge Bank’s latest criteria tracker also revealed ‘maximum age at the end of term’ was the most searched-for criteria by brokers in October for the second month.

It said this could indicate borrowers were trying to stretch the term to keep their repayments as low as possible in the short term as they braved the current uncertainty.

‘Income multiple used for affordability assessment’ and ‘self-employed – one year’s accounts’ were also in the top five search results.

Knowledge Bank said this suggested borrowers were struggling with affordability and, as such, were reassessing their income multiples in order to find ways to get onto the housing ladder.

Bridging and second charge

It’s not just the residential sector where this issue was prevalent, Knowledge Bank said the top criteria search in the bridging market was ‘maximum LTV’, and in the second charge market, ‘maximum LTV’ was similarly in first place.

People with smaller deposits were feeling the effects of lenders continuing to tighten their criteria and Knolwedge Bank said it demonstrated LTV restrictions were impacting borrowers and their ability to buy or remortgage.

Buy-to-let

The struggle in the residential market, however, was juxtaposed with huge confidence in buy-to-let, according to the latest tracker.

Indeed, ‘first-time landlord’ was the most searched for criteria in this market. Knowledge Bank thought, as people progressively worried about affordability in the residential market, homebuyers may be exploring alternative options to get a foot onto the property ladder and becoming a landlord was one such avenue.

There is currently huge demand for rented property as more people struggle to get onto the housing ladder, making it an attractive option to those who are desperately trying to purchase property, said Knowledge Bank.

Equity release

Searches for ‘property with Annex, outbuildings, land or acreage’ took the top spot in the Equity Release market once again.

This trend has undoubtedly been boosted by coronavirus impacting consumer habits, as fears over affordability are driving people to consider buying property with relatives, said Knowledge Bank.

It said this point became increasingly credible when it looked at criteria recorded from the self-build market. Indeed, a spike in searches for ‘purchase of adjoining property’ exemplified the broader impact this is having on the market, as homebuyers looked at purchasing property with relatives or bringing elderly relatives closer to them after being apart in the first lockdown.