Brokers are seeing a Spike in Activity from Newly Employed Mortgage Applicants

The number of broker searches including the term ‘time in current employment’ has increased significantly, new figures from Knowledge Bank suggest. Appearing within the top search terms for the first time, it is a strong indication that brokers are doing business with more clients who have recently started new jobs.

More specifically, customers are looking to make mortgages available to those who have not been in their current role for a long period of time.

This transition marks a shift experts have been predicting for some time, triggered by the withdrawal of the government’s furlough initiative and extensive job losses. Over the past six months, millions have either switched roles or been forced to find new employment entirely.

Borrowers facing financial difficulties

Along with ‘time in current employment’, other top-ranking search terms suggest more clients are approaching brokers in difficult financial situations. During May and June, the number of searches for ‘defaults registered in the last three years’ increased significantly.

Elsewhere, the term ‘capital raising for debt consolidation’ was one of the top searches in the second charge market. Brokers have reported an influx of clients considering second-charge mortgages to clear debts built up over the course of the past year when many struggled with reduced income or a complete loss of income.

Another term that saw a spike in numbers over the past couple of months was ‘soft footprint at the DIP stage,” reflecting the ferocious competition among prospective buyers for desirable properties. In the real estate sector, agents are now routinely demanding that prospective buyers have a decision in principle in place prior to permitting viewings.

The growing number of searches, including the term footprint at DIP stage’, suggests that brokers are proactively seeking prompt decisions from lenders on behalf of their customers while at the same time safeguarding their credit scores.

In the bridging market, the term regulated bridging remains the most commonly searched term of all. The only major change is the addition of ‘light refurbishment’ to the top five search terms for bridging finance applications.

A reassuring outlook?

Experts have since commented on the findings, highlighting the partially positive nature of people pursuing and taking up new employment opportunities.

“The news that more people are starting new roles is certainly positive. These may be fuelled by the pandemic, which has shifted priorities and increased opportunities in some industries due to flexible working,” commented Knowledge Bank operations director Matthew Corker.

“However, the increasing number of searches for ‘defaults’ and ‘capital raising for debt collection’ is a concern for the economy.”

“Although we have moved past the stamp duty deadline, the appetite for moving does not look set to dissipate any time soon. With this rush of clients, brokers do not have time to spend hours every day on the phone with lenders and updating spreadsheets with the latest criteria. Using a comprehensive criteria search system can save brokers a massive amount of time and also ensure they are providing the best advice.”