Fundraising mortgages top searches in September ahead of stamp duty deadline: L&G


According to data from the Legal & General Mortgage Club’s SmartrCriteria tool, searches for fundraising mortgages continued to dominate in August and September, with an overall increase of 18%.

As such, a capital-raising mortgage was the second most sought after criterion in September, dropping from sixth place in August.

Demand for lenders willing to consider applicants with poor credit continued to decline month over month throughout the third quarter. In August, the SmartrCriteria tool recorded a 9% drop in demand for products suitable for borrowers with debt management plans and an 8% drop for clients with unsecured arrears. Searches for unsatisfied defaulting borrowers and contract workers also fell by 9% and 8%, respectively. In September, demand for products suitable for borrowers with satisfied defaults and unsecured arrears declined further by 10% and 7%.

The SmartrCriteria tool also found that searches conducted on behalf of international buyers increased 160% in August. This corresponds to a 107% increase in searches for international buyers with a visa. The surge in interest from international buyers has coincided with the easing of restrictions on international travel and the slowdown in domestic purchases following the end of the stamp duty holidays.

Other key findings included that condominium products saw a 4% increase in demand in September, while searches for borrowers who bought or remortgage less than 6 months ago increased 13%.

Kevin Roberts, Director, Legal & General Mortgage Club, said:

“It is reassuring to see a wide range of factors driving demand in the mortgage market, especially in light of the end of the stamp duty holidays. However, the crisis has in many cases complicated the financial situation of candidates and advisers should keep this in mind. “

“In this complex environment, the value of mortgage advice and technology remains clear. Advisors will need to embrace technology to automate processes such as affordability calculations and other administrative tasks, to usher in efficiencies and feel confident in resolving these complex cases. With purchasing activity expected to return to its pre-pandemic level in the coming months, in light of the end of the stamp duty holidays, now is the time to invest in mortgage technology and prepare for this exciting new era of the market. “


Previous L&G: Rising mortgages continue to rise
Next Suraj Kumar Rajwani discusses 6 ways venture capital has changed

No Comment

Leave a reply

Your email address will not be published.