Searches from borrowers using gifted equity or making a concessionary purchase rose by 75 per cent over August, data from Legal & General Ignite has shown.
Searches for those using gifted deposits were also found to have risen by 35 per cent which, according to Legal & General Ignite, showed borrowers have relied on gifts and loved ones when purchasing their first property.
This follows Legal & General’s Bank of Family research which found that 77 per cent of buyers receiving family assistance directed at least a portion of their funding towards a deposit.
Advice is critical right now Jodie White, Legal & General TechnologyLegal & General Technology head of mortgage products, Jodie White, commented: “Criteria searches for gifted deposits, gifted equity, and more, continue to dominate our Ignite results.”
She added that this further highlights the “prominent role” that family contributions play in supporting the UK’s housing system.
Buy-to-let
The data found that searches on behalf of portfolio landlords had increased by 22 per cent from July to August as buy-to-let investors looked to expand their businesses.
Other landlords used financial support to enter the market, as the data showed that searches for landlord/vendor gifted equity increased by 18 per cent over the month.
It was additionally revealed that searches for holiday let/Air B&B rose by 22 per cent, something Legal & General Ignite attributed to landlords capitalising on the “pandemic-fueled demand” for staycations.
The data also confirmed “visa” as the most popular criteria used by advisers searching on behalf of their clients.
Searches on behalf of expats not in the UK and overseas customers increased by 17 per cent and 21 per cent respectively.
Legal & General Ignite stated that this showed foreign buyers are hoping to acquire property in the UK.
Specialist lending
Additionally, with Help to Buy coming to a close, specialist lending was also found to be propping up the market as many borrowers “considered alternative avenues”.
The data found searches for discounted market sale increased by 69 per cent in August as buyers “looked to purchase a property at a discounted price”.
Additionally, searches for joint borrower-sole proprietor were the third most popular criteria as other buyers considered purchasing a property with other applicants.
White added: “During what is continuing to be a financially challenging period for many, it's critical that advisers adopt innovative technologies to effectively handle the demand for advice across a wide range of sectors.
“Advice is critical right now, and advisers have a key role to play in helping buyers access a comprehensive range of options that aligns with their financial needs.”
tom.dunstan@ft.com
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