This suggests that more are looking to borrow against their property
Searches for capital raising mortgages have been trending upwards in recent months, suggesting more borrowers are considering their financial options during the ongoing cost-of-living crisis, financial services provider Legal & General said.
Data from its SmartrFit tool has revealed that ‘capital raising’ has been identified as the third most used search criteria by brokers in April.
Capital raising mortgages allow homeowners to remortgage their property to release funds for other purposes.
According to Legal & General, ‘capital raising’ has continuously grown in popularity during recent months, ranking as the sixth most popular term in January, then fifth in February, and third in March. The firm added that this is perhaps an indication that more borrowers are looking to borrow against their property. Historically, this extra borrowing has been used by many homeowners to finance home improvements.
Legal & General also reported that ‘first-time buyer’ was the second most used search criteria in April, retaining its position from the previous month.
There was also some indication that many first-time buyers are continuing to rely on the Bank of Mum and Dad to fund their purchase plans, with searches concerning guarantors and family assistance rising by 18% and searches from those with deposits from a loan increasing by 10%.
‘Visa’ remains the most popular search criteria used, and has been in the top spot since October, suggesting the UK market remains an appealing destination for overseas borrowers.
“This month’s figures are a great insight into the kinds of products that borrowers are currently looking for, and the consistent rise in searches for capital raising mortgages is a clear example of how the market is continuing to evolve,” Jodie White (pictured), head of mortgage products and transformation at Legal & General, said.
“New products and increasing innovation from lenders are giving buyers more choice, but they also mean that advice is even more valuable. Brokers are already playing a key role in this rapidly moving market, and it’s more important now than ever that buyers can access the best possible financial advice.
“Of course, an increasingly complex market presents difficulties for brokers too, as they need to work harder to stay up to speed with the latest offerings. Finding the right tech products though can be a game-changer. A good tech solution can allow brokers to more quickly access a complete view of all the most suitable options at a client’s disposal. A one-stop platform that can offer comprehensive affordability checks and other services is a powerful tool in the adviser’s arsenal.”
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