Brokers have worked with many borrowers who have started new jobs, as “time in employment” featured heavily in criteria searches in February in the residential and secondary markets.
According to Knowledge Bank, this reflects the record number of job changes recorded by the Office for National Statistics (ONS) between October and December last year.
Matthew Corker (illustrated), director of operations at Knowledge Bank, said: “There seems to be a return of confidence in the job market and people feel confident enough to change roles. Some are changing industries altogether, perhaps because of the pandemic, and brokers are working with many clients who are new to their role. »
Criteria used by lenders vary with regard to length of employment and Corker said: “Some are happy to receive written confirmation of the offer and the first month’s payslip. Others require a trial period to be passed before considering the borrower.
The impact of the pandemic
The Knowledge Bank monitoring results also indicated that brokers were looking for “missed or late payments” and “defaults – recorded within the last three years” in the residential market, a clue that the financial impact of the pandemic was still being felt by some borrowers, even as more economic certainty loomed.
In the second load area, brokers searched for “raise capital – buy buy to let,” which Knowledge Bank said was a more positive sign. And the rental market remained attractive to new investors, leading brokers to seek out “first time owner” and “first time buyer” in the buy-to-let (BTL) space.
Another search that followed in the residential and second-charge sectors was “maximum age at end of term.” And “regulated bypass” continued to dominate searches in the bypass industry, with February being the fourth month in a row that it was the most searched term.
Adapt hybrid offices
As more businesses adopt hybrid working models, searches for “commercial property” rose for the first time in four months, indicating that borrowers could use bridge loans to renovate commercial spaces.
Corker added: “Interest in bridging loans has increased significantly in 2021, and the start of 2022 has seen increased attention to commercial real estate bridging loans. These can be for the purchase of commercial units, similar to a residential bridge, when a chain breaks. Or for renovations, then sell or refinance on a conventional commercial mortgage.
“The buy-to-let market in particular has been volatile, and with the Bank of England’s base rate rising, lenders will certainly continue to adapt,” he said. “With this trend sure to continue, brokers should ensure they use a criteria based search system to stay on top of all the latest changes.”