Borrowers continue to rely on the bank of mum and dad as joint borrower sole proprietor mortgage searches climbed by 17% in March, according to data from the Legal & General Mortgage Club.
The study, drawn from the club’s SmartrCriteria tool that tracks product searches from over 8,000 advisers, found that activity in the buy-to-let market reinforced this trend, as searches for gifted equity on behalf of landlords jumped by 38%.
Its data “suggests that borrowers are relying on financial support”.
The report adds that “demand from buyers continued despite rising living costs and soaring house prices, especially in the holiday let sector”.
It says that searches for holiday lets lifted by 24% in March, “implying that the sector is primed for continued growth following the boom in staycations that was sparked by the pandemic”.
The buy-to-let market was also strong, with searches for first-time landlords rising by 23%.
Broker searches on behalf of borrowers with complex finances continued to grow in the month. Searches for lenders willing to accept borrowers with an unsatisfied default lifted by 46%, while searches for lenders that ignore communications defaults, such as missed telephone bills, jumped by 65% in March.
Also, searches on behalf of those with unsecured arrears and missed mortgage payments increased by 18% and 26%, respectively.
The report says: “This data comes as households across the UK experience a surge in the cost of living, with soaring energy bills making it harder for consumers to meet their monthly outgoings.”
Legal & General Mortgage Club head of broker and propositions Clare Beardmore adds: “With inflation taking its toll on household expenses, the latest findings of our SmartrCriteria tool reinforce the need for advice, as borrowers look to find a mortgage that suits their changing circumstances.
“The current squeeze may be denting affordability, and, in turn, prompting borrowers to rely on financial support from their loved ones to minimise their borrowing costs.
“Meanwhile, certain borrowers with more complex circumstances are looking to get on the property ladder, or refinance following the pandemic, and will need the guidance of advisers to find alternative mortgage solutions.