The cost of living crisis is already impacting brokers’ searches with ‘defaults’ and ‘missed payments’ featuring prominently in March, according to the latest data from Knowledge Bank’s criteria tracker.

With energy costs increasing significantly in April, Knowledge Bank operations director Matthew Corker says: “The volume of searches for both defaults and missed payments sadly looks like it will continue to build.”

“Increasing energy prices and inflation outstripping wage growth will hit some hard and in the following months we may see more and more struggling to pay bills,” Corker notes.

Data showed that some borrowers also looked to use second charge loans to consolidate debts, with brokers searching for ‘mortgage or secured loan arrears or defaults’ during the month.

With a combination of an ageing population and increasing house prices, ‘maximum age at end of term’ was the most-searched term in the residential market and second-most searched in the second charge market, the data revealed.

Brokers are also working with borrowers who have recently moved jobs, as ‘time in current employment’ is among the most-searched terms in the residential market.

The term has featured in the five most-searched terms every month since December 2021 as confidence has built in the economy and borrowers change roles.

“The jobs market is back in full swing and those that perhaps put off moving roles during the pandemic are now looking to switch careers which explains the interest from brokers,” Corker explains.

The buy-to-let market was dominated by searches from brokers working with inexperienced landlords. Interest in the rental market from both ‘first-time landlords’ and ‘first-time buyers’ resulted in both terms landing in the five most-searched during the month.

“The buy-to-let sector continues to gain interest and lenders are launching new buy-to-let products frequently”, according to Corker.

“Those that are open to working with inexperienced landlords are capitalising on a growing niche in the sector and more and more lenders may follow suit,” he says.

‘Regulated bridging’ featured prominently in brokers’ searches in March, marking the fifth consecutive month as the most-searched term.

Alongside bridging loans for residential properties, brokers also searched for ‘commercial property’ finance.

Corker comments: “Although regulated bridging continues to dominate searches, the growing number of loans connected to commercial properties is an interesting part of the market. With the changing face of the high street, some businesses are adapting their premises to accommodate the new way consumers both shop and work.”

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