Latest data from Legal & General Ignite, the mortgage research and sourcing platform, indicates a robust UK mortgage market amidst ongoing economic turbulence.
The data highlights persistent pockets of demand, particularly in areas with complex borrowing requirements, signalling a nuanced landscape for homebuyers and homeowners alike.
Throughout March, the three most utilised search terms on the platform – ‘Visa’, ‘default satisfied’, and ‘first-time buyer’ – retained their positions, underscoring the enduring relevance of these criteria in the market. Notably, broker searches for ‘maximum age’ surged by 6%, elevating it to a top-four search term, indicative of evolving borrower needs and preferences.
Similarly, demand for ‘shared ownership’ and ‘joint borrower sole proprietor’ products remained strong, reflecting the enduring appeal of alternative homeownership structures.
The research also emphasises the pivotal role of family and friends in facilitating home purchases, with support from the ‘Bank of Family’ projected to reach £8.1 billion in 2023 alone, aiding nearly half of all homes bought by individuals under 55.
Searches from homeowners seeking a second residential property saw a notable uptick of 7% in March. This surge occurred despite recent policy adjustments announced in the Spring Budget aimed at stimulating sales of second homes by reducing the higher rate of property capital gains tax.
Despite these fluctuations, the data indicates a shifting landscape of borrower requirements, with searches for interest-only products declining by 8% from February to March. This trend contrasts with the mid-2023 spike in demand for such products, attributed to market uncertainties. Notably, searches for criteria such as ‘debt management plan’ saw a significant decrease of 21%, reflecting evolving borrower circumstances.
Jodie White, head of Mortgage Products & Transformation at Legal & General Mortgage Services, expressed cautious optimism regarding the market’s resilience, citing the stabilisation of swap and interest rates as a contributing factor. White emphasised the importance of advanced technological tools in navigating the complexities of the mortgage landscape, underscoring Legal & General’s commitment to investing in innovative solutions to support broker and lender partners.
