Within the ever-changing buy-to-let sector, the most searched for criteria was once again lending to limited companies, followed closely by brokers searching for lenders who would accept first time landlords.
Criteria searches in the residential sector continue to focus on stretching out loan terms with brokers favourite search once again being for the maximum age at the end of the term. However, the main change in residential criteria is the rising popularity of searches for lenders accepting self-employed borrowers with just one year’s accounts.
Almost a quarter of all criteria changes in July (23%) were in the bridging sector and once again brokers top search was for lenders offering regulated bridging to their clients. For the first time since February, brokers have been searching for lenders accepting heavy refurbishment suggesting that bigger projects are being undertaken.
Although there were fewer criteria changes in the commercial sector that others in July, the search for products allowing a commercial owner occupier entered the top five for the first time in three months. The top search was, once again for lenders offering commercial loans on semi-commercial properties suggesting that the reshaping of the high street and retail versus residential continues at a pace.
Knowledge Bank CEO, Nicola Firth, said, “July was another hugely busy month for criteria changes and our dedicated team worked flat out with Lenders to keep up with the changes and so it would have been impossible for brokers to stay on top of all the changes. The standout sector for change in July was buy-to-let and a raft of product and criteria changes flooded in each day.
“There has also been a huge shake up in the bridging sector which saw almost a quarter of all criteria changes in the month. Bridging lenders continue to innovate and it is one of the most fluid sectors in the market. This makes it highly adaptable to political and economic change and brokers need to keep a close eye on changes which are happening daily.
“With reports that completion times becoming longer and longer, coupled with rates rising, it’s imperative that brokers don’t waste a second on failed applications and know at the outset which lenders will accept their clients by checking criteria conditions prior to a product search.”