Brokers have overwhelmingly searched for ‘Temporary Maximum LTV Restrictions’ for six months – highlighting how the lack of availability of high LTV mortgages has become such a challenge.
The data comes from Knowledge Bank, the criteria search platform for mortgage brokers due to restrictions caused by the pandemic.
Matthew Corker, lender relationship manager at Knowledge Bank, said: “Broker criteria searches in August provided clear signs that the housing market is still being affected by Covid-19.
“It is evident that there is growing concern around mortgage eligibility with consumers across the board, particularly those looking for higher LTV mortgages. The looming end to the furlough scheme also continues to feature prominently as those on furlough attempt to get mortgages approved before their furlough ends.
“In a similar vein, more first-time buyers are increasingly reliant on family members to give them a helping hand to get on to the property ladder, which is impacting the maximum age at the end of the mortgage and may also have a longer-term impact on equity release options.
“Coronavirus has impacted consumer habits, and we are beginning to see the wider trends taking place as a result of this with buyers and lenders alike.”
Terms relating to coronavirus have dominated broker criteria searches for six consecutive months in residential, second charges and bridging loans.
In the residential market intermediaries have searched for ‘Covid-19: Furloughed Workers’ prominently in the residential market since April.
Knowledge Bank predicted seeing searches relating to furloughed workers increase in the next two months, as furloughed buyers attempt to get mortgages approved before they are faced with potential uncertainty over employment when the furlough scheme ends at the end of October
‘Maximum Age at End of Term’ was in the second top spot for residential. One reason for this could be recent news that 23% of homebuyers are reliant on the ‘bank of mum and dad’ post-pandemic.
If parents or family members are helping to secure mortgages, their age may well be taken into account before approval is granted.
The mortgage could therefore be limited by the age of the parents or family members offering a helping hand, impacting mortgage terms.
This post has originally been featured in Property Wire.