Broker searches on behalf of first-time buyers, first-time landlords, and non-owner occupiers grew by 13% in October, according to data from Legal & General Ignite.
The sourcing platform says home loan enquiries have lifted month-on-month since June “despite wider economic uncertainty,” but adds that it is “clear that a reliance on wider support remains commonplace with first-time buyer enquiries”.
It points out that searches for ‘gifted equity/concessionary purchases’ grew by 8% from September to October, while ‘joint borrower sole proprietor’ enquiries lifted by 7% in the same period.
Mortgage lending that relies on family or friends has risen by 56% in the last seven years, according to a Bank of Family report published by Legal & General and Centre for Economics and Business Research last month.
The report estimates that 47% of all homes purchased by buyers under the age of 55 this year will be helped financially by family or friends.
The Ignite study points out that the impact of the high level of inflation, currently at 6.7%, “remains pronounced”.
Broker searches last month for borrowers with unsecured arrears, missed mortgage payments, and unsatisfied defaults each rose by 16%, 4%, and 2%, respectively.
It adds that enquiries on behalf of borrowers with unsatisfied county court judgements jumped by 30%.
Demand for capital-raising mortgages lifted by 15% in October “reflecting the challenging economic climate,” says the platform.
However, the UK market remains popular with international investors, with searches related to ‘limited company buy to let’ and ‘limited company income figures’ lifting last month by 18% and 10%, respectively.
Legal & General Technology head of mortgage products & transformation Jodie White says: “With advisers contending with complex client needs and circumstances, as well as the wider economic backdrop, it is vitally important that they are armed with the tech tools that the industry has to offer.”
