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According to the Legal & General Mortgage Club’s SmartrCriteria tool, searches for capital-raised mortgages continued to dominate in August and September, increasing 18% overall.
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.
Buckinghamshire launches affordability calculator
Searches for unsatisfied defaulting borrowers and contract workers also fell by 9% and 8%, respectively. In September, the 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 holiday.
The data also shows that Visa-compatible mortgage criteria remained the most sought-after metric in July, August and September, and the SmartrCriteria tool saw a 4% increase in demand for condominium products in September.
And in September, searches for borrowers who remortgage or bought their property less than six months ago also increased 13%.
Kevin Roberts, Director of the 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 solving these complex cases.
“With purchasing activity expected to return to pre-pandemic levels 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. “
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