In January there was a significant rise in the number of brokers searching Knowledge Bank for adverse credit, its criteria activity tracker has found.
In the residential sector for the first time two of the top five most popular searches feature adverse credit conditions, with self-employed, one years’ accounts being the top search followed by maximum age at end of term. This was followed by capital raising for debt consolidation and unsatisfied defaults.
Nicola Firth, chief executive of Knowledge Bank, said: “2019 has started with a flurry of activity both in terms of broker activity and criteria changes.
“There are a vast amount of changes and updates happening every day and feedback from brokers reveals that they are now performing multiple searches prior to each application.
“One broker revealed that he performs a quick criteria search before every update with a customer to ensure that nothing has changed since he last spoke with them even if it was just the day before.
“This pace of change creates a vibrant lending landscape but really puts the pressure on brokers to ensure that they are basing their advice and recommendations on the latest possible information.
“In addition to being best practice, using a criteria search system also allows them to evidence and document their process which is becoming increasingly crucial.”
January is now the third month in a row that lending to limited companies was the most searched for criteria in the buy-to-let sector, followed by requirement to be a homeowner and first-time landlord.
In January the most searched criteria was for early repayment charges but capital raising to purchase a buy-to-let entered the top five for the first time. This may suggest that borrowers are looking at buy-to-let as a way to release the value in their property for investment returns.
The top search for second charges was maximum loan amount followed by maximum LTV and then capital raising, for debt consolidation, purchasing a buy-to-let and business purposes.
Early repayment charges was the top search for equity release, followed by maximum loan amount while for self-build maximum LTV was the most popular search, followed by capital raising for land purchases.
Maximum LTV was the top search for both bridging and overseas categories. Other top searches for bridging included regulated bridging and development bridging while the top searches for overseas were expats adverse credit and maximum number of applicants.
The most popular search for commercial was commercial owner occupier, followed by commercial investment mortgage.
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Source: New feed