Overseas buyers drove October market activity

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Latest figures from Legal & General Mortgage Club’s SmartrCriteria tool shows that mortgages for applicants with visas was the highest searched term among advisers in October.

SmartrCriteria figures also revealed that searches for ‘expats not in UK’ remained on the list of top 10 search terms among advisers.

The figures come as the mortgage market continues to experience high levels of demand from consumers, including buyers looking to move to the UK and who are seeking to benefit from the Stamp Duty holiday which ends on 31 March 2021. Recent research from Legal & General Mortgage Club has shown buyers need to get their homebuying plans underway now to benefit from the tax exemption, with the average mortgage journey now taking between 15-17 weeks.

The data also showed that ‘maximum age’ was the second most searched term among advisers in October. This suggests that older borrowers, including those looking to downsize, were also looking to benefit from the Stamp Duty holiday. The tax has long been seen as a significant barrier to so-called ‘Last Time Buyers’ who want to move into smaller, more manageable properties in later life.

The most popular search within ‘maximum age’ was the 71 to 75-year-old range, which increased by 14%. However, the largest percentage increase was for those aged 85 and over, which saw an increase of 38% in searches during October.

Kevin Roberts, director of Legal & General Mortgage Club, said: “Demand from consumers to buy property in the UK shows no signs of slowing and it’s clear that the Stamp Duty holiday continues to drive activity. Where previous Stamp Duty exemptions focused on first-time buyers, the most recent changes are also incentivising those looking to move to the UK, as well as older homeowners who want to downsize. Our SmartrCriteria data shows that both groups are clearly seeking to take advantage of the savings before it’s too late.”

“There is an opportunity for advisers to support both groups of buyers. Lending criteria is changing every day and borrowers face a longer mortgage journey as the market continues to adapt to unprecedented demand. Advisers will be key in helping these borrowers and others to cut through the noise and find the best product for their particular circumstances.”

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