Criteria search specialist Knowledge Bank has revealed that there was a ‘market of contrasts’ in January.

The first criteria index of 2020 found some sectors brokers are searching for completely new criteria on behalf of their clients whereas in others, search topics remained stable and consistent. The data was collected from all of the searches that brokers performed for their clients during the month of January in an attempt to place mortgages and loans.

All of the top five most popular searches in the equity release market were new; this is the first time that this has happened in any category for over a year.

The criteria that was searched on above all else in the equity release sector was early repayment charges followed closely by brokers searching for lenders who would accept clients with adverse credit. Making up the rest of the top five most popular searches were for lenders who would accept an application from a married couple in a single name, applications from those in sheltered accommodation and, of course, the lenders who would offer the maximum loan amount.

The self-build sector was another that started 2020 with a shake up as four of the top five most searched for categories by brokers were new. The search for the maximum LTV retained the top spot, while the maximum loan amount that can be secured which was the second most searched for criteria.

In addition, changing clients’ circumstances also had brokers using the system to find the maximum loan to cost available and lenders who would lend to self-employed expats and those with retained company profits.

Things remained slightly more consistent in the residential market with the most searched for criteria once again being the maximum age lenders will allow at the end of the mortgage term. Knowledge Bank said this suggests that borrowers in 2020 are continuing to look at extending their mortgages into retirement. The search for ‘capital raising for debt consolidation’ highlights an area, or time of year, when historically borrowers look to get on top of their finances, especially if they overspent at Christmas. This search also came into the top five in the second charge category.

Criteria searches in the secured loan and bridging markets remained relatively consistent from December 2019 with brokers using the criteria search system to find the maximum loan amount possible for their clients.

Matthew Corker (pictured), lender relationship manager with Knowledge Bank, said: “While some sectors witnessed a radical shake up of client needs some are notably more consistent and predictable. What this does highlight is how difficult it continues to be for brokers to balance the changing needs of their clients with lenders ever-changing criteria.

“Effectively brokers are the pivot in a seesaw, where clients’ needs go up and down at one end and lenders’ criteria does the same at the other. Brokers simply add massive value by balancing out the needs of the client with lending criteria but in order to do this they need to know what has changed and when.

“2020 is going to be another year of uncertainly and change so brokers need to arm themselves with the tools to make placing mortgage cases as painless and practical as possible.”