'New year sees changes in broker criteria searching'
The following is taken from an article from The Intermediary on 15th February 2023:
‘New year sees changes in broker criteria searching.
Knowledge Bank’s monthly criteria index has revealed that 2023 has begun as 2022 ended with a shake-up in the most popular searches performed by brokers each month.
The UK’s largest database of mortgage lending criteria keeps track of the most common searches performed by brokers as they look to place a client’s case. Rising interest rates, changes in borrowers’ circumstances and lenders’ tightening criteria during a cost-of-living crisis has heaped pressure on brokers to find a home for their client’s mortgage.
Knowledge Bank CEO Nicola Firth (pictured) said: “2023 has started with an uncertain financial landscape for many existing and prospective borrowers.
“With the bank of England base rate rising to 4%, household budgets are being stretched and placing mortgage cases has become increasingly challenging for brokers.
“Lenders continue to refresh products with more regularity than normal, and criteria tweaks are being made in an attempt to adjust to customers’ needs. It is therefore more important than ever that brokers get it right first time by ensuring that a borrower fits criteria prior to product sourcing and submitting an application.”
The January criteria index shows that in the residential category the search for ‘missed or late payments’ shot up the ranking of the top five most common searches to second place. Another change was the search for ‘interest only’ which entered the top five this month suggesting that borrowers are looking for ways to keep monthly payments as low as possible.
The buy-to-let sector saw the top two searches for ‘lending to limited companies’ and ‘first-time landlords’ retain their places for the second month in a row. However, the search for lenders requiring the ‘borrower to be a homeowner’ rose to the third spot and the search for ‘interest only/part and part single applicant’ re-entered the top five after dropping out last month.
The most popular search in the second charge category was for ‘maximum LTV’ once again followed closely by the ‘minimum loan amount allowed’ and the ‘maximum age at the end of the term’. However, entering the top five searches in January was the search for ‘unregulated buy to let’ which shows an appetite from borrowers to use secured loans for commercial buy to let premises.’
So, if you’re worried about your credit file or missed payments affecting your ability to obtain a mortgage, then please contact us at Adept Private Finance where we will be more than happy to help.
Tel (Mark) – 07973 502949
Tel (Andrew) – 07971 519735
Adept Private Finance is a trading style of I-Property Finance Limited, which is authorised and regulated by the Financial Conduct Authority. Our Financial Register Number is 734423.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE