Data reveals which areas of the market remained sought after by customers
Criteria searches for regulated buy-to-let mortgages grew by 59%, while those made on behalf of overseas customers climbed by 57%, data from the SmartrFit platform of Legal & General (L&G) has revealed.
This data on criteria searches, L&G said, suggest which areas of the market remain healthy despite the overall drop in demand.
November’s data also showed signs of optimism in the buy-to-let sector specifically, with 10% growth in criteria searches for holiday lets. In addition to this, searches for ‘regulated’ buy-to-let mortgages rocketed by 59%, with increasing numbers of borrowers renting out their property to a relative.
Foreign buyers also remained committed to investing in the UK property market throughout November, with criteria searches on behalf of overseas customers climbing by 57%. The most criteria searches were also made on behalf of applicants with a visa. Additionally, last month saw a 38% increase on behalf of borrowers using deposits from a foreign source.
Meanwhile, the end of Help to Buy prompted an uptick in searches for gifted deposits (7%) and products suitable for discounted market sale schemes (20%) in November.
Soaring living costs also led to a 60% jump in criteria searches for interest-only mortgages, exceeding market averages; while higher energy bills potentially contributed to a further 67% spike in searches for products that consider a property’s energy performance certificate.
“With affordability coming under pressure in recent months, we would naturally expect activity to level off and the market to soften towards the end of the year,” Kevin Roberts (pictured), managing director at Legal & General Mortgage Services, said. “At the same time, it’s been reassuring to see certain areas of the market forge ahead and outperform averages.
“The ongoing cost-of-living crisis is notably influencing this demand, with increasing numbers of borrowers opting for interest-only mortgages and greener homes.
“With Help to Buy soon becoming redundant, it’s equally important for borrowers to consider the alternative avenues at their disposal. While the Treasury’s extension of the mortgage guarantee scheme could offer a lifeline to many, advisers must be on hand to help borrowers source the best solution for their individual needs.”
