Total broker searches increased too
Searches made on behalf of first-time buyers on Legal & General’s SmartrFit platform increased by 22% from February to March – making it the second most popular search term during the period.
Total searches increased in March 2023, with monthly searches higher than January and February’s figures – reaching the highest level since August 2022.
The single most popular mortgage criteria search for the month was made for applicants with a visa, continuing an almost six-month long trend.
Searches for houses in multiple occupation also rose by a significant 24.6%, as well as searches linked to the criteria for missed mortgage payments, which jumped by 24%. The latter, Legal & General noted, implied that recent rate rises, high inflation, and the cost-of-living were still weighing heavily on some existing mortgage holders.
These ongoing affordability issues have created an environment where more borrowers are leaning on financial gifting to boost their borrowing power. As a result, searches made on the basis of a gifted deposit climbed by 19% as borrowers potentially looked to leverage an inheritance or financial gift to get on the property ladder.
Presumably due to rising energy costs, searches for products that considered a property’s energy performance certificate rating increased by 8.3% in March.
“Despite gloomy predictions for the housing market in 2023, it is heartening to see that customers’ changing needs are being met with a dynamic range of highly competitive and innovative products,” said Jodie White (pictured), head of mortgage products and transformation at Legal & General Technology.
“Our data is a strong indicator that affordability is gradually improving for some. On one side of the market, first-time buyers are stepping forward to realise their homeowning dreams, but many are having to lean on gifted deposits and other forms of financial gifting to fund their purchase.”
White added that there were signs to suggest that many people had not yet recovered from last year’s financial hardship, and they were still in need of the support of an adviser to find a product that best suited their borrowing profile.
“When advising borrowers who are navigating a change in their finances, especially those who are finding themselves in a vulnerable position, brokers should be taking full advantage of the technology at their disposal,” White stressed.
“Open data platforms and advanced CRM softwares are just two of the many tools advisers can use to cut out time-consuming manual tasks so they can focus on what they do best – giving high quality advice to those who need it the most.”
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