Knowledge Bank: Top search ‘time in employment’

Jake Carter

November 17, 2021

laptop mortgage search

With an estimated 1.32m people re-joining the job market in October as a result of the end of the furlough scheme, the top search by brokers in the residential market was ‘time in employment’, according to Knowledge Bank.

Brokers also increased the number of searches for ‘self-employed – one year’s accounts’.

Looking beyond employment, borrowers were stretching finances in October, with ‘income multiple used for affordability assessment’ being the second-most searched term.

‘Missed or late payments’ also featured in the residential market, and ‘capital raising for debt consolidation’ and ‘mortgage or secured loan arrears or defaults’ were among the most-searched in the second charge market.

In the bridging market, ‘minimum loan amount’ was the most-searched term in October.

In contrast, there were also some looking to make significant changes to properties, with ‘heavy refurbishment’ and ‘maximum loan to value’ also featuring in the five most-searched terms.

‘Regulated bridging’ was the second most-searched term in October, showing alongside renovations to commercial properties, borrowers were also using bridging finance for properties they, or their family will use.

In the self-build sector, ‘minimum loan amount’ featured in the most-searched terms for the first-time since June.

However, most were looking to maximise the amount they could borrow, with ‘maximum loan to value’ and ‘maximum loan to cost’ in the first and second most-searched spots in the self-build sector.

Matthew Corker, operations director at Knowledge Bank, said: “Our criteria database is the most comprehensive on the market, and our analysis shows lenders have been reviewing a range of criteria recently, particularly in areas where brokers are searching.

“For instance, with the end of furlough, brokers are working with a number of clients who have started new roles, and lenders have reacted, loosening criteria for borrowers starting new jobs.

“This follows a raft of criteria changes related to self-employed borrowers.

“By reducing restrictions imposed on freelancer applicants, lenders demonstrated that overall, they are confident that the economy is returning to normal.

“There are still a huge number of vacancies across sectors, and there will undoubtably be more new starters in the coming months, so this may well be an area that lenders continue to look at.”

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