First-time buyers are continuing to “push ahead” with purchase plans in the early part of 2023, according to new data from Legal & General’s SmartrFit platform.
Specifically, “first-time buyer” was the second most used search criteria by mortgage brokers in April, retaining its position from March.
Legal & General say 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.
Indeed, searches concerning guarantors and family assistance increased by 18%, while searches from those with deposits from a loan rose by 10%. Interestingly, the fifth most commonly used criteria by brokers was “joint borrower, sole proprietor”.
Separately, it is also said that searches for capital raising mortgage have been trending upwards in recent months, suggesting more borrowers are considering their financial options during the ongoing cost of living crisis.
This search term 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 data also suggests that more buyers may be opting for smaller properties amidst recent house price inflation squeezing budgets. Searches for “freehold/leasehold flats” increased by 6%, while searches for “studio flats” increased by 9%.
Searches for “Discounted Market Sale (DMS)” products also increased by 37% in April.
As well as this, the April data confirms that Visa remains the most popular search criteria used. This has held the top spot since October, suggesting the UK market remains an appealing destination for overseas borrowers.
Jodie White, Head of Mortgage Products & Transformation, said:
“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. New products and increasing innovation from lenders are giving buyers more choice, but they also mean that advice is even more valuable.”
