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Mortgage searches remained consistent in September despite market volatility, reveals Legal & General
Searches on behalf of those looking to remortgage after just six months rose by 15%. Criteria searches that consider a property’s energy performance certificate (EPC) climbed by 16%. 24% increase in searches for retirement interest-only (RIO) mortgages.
21 Oct 2022
Legal & General’s SmartrCriteria tool has today revealed that mortgage criteria searches remained consistent from August to September. Strong activity in the Private Rented Sector (PRS) contributed to this, with searches for ‘let-to-buy’ growing by 23% from August to September alone.
Meanwhile, searches on behalf of landlords using gifted equity climbed by 32%, while those for portfolio landlords grew by 18% in the same period (August to September). In a similar vein, searches for HMO mortgages grew by 53%, while criteria searches for top slicing saw a 6% rise.
Uptick in remortgage activity and demand for energy efficient homes
The data also shows that searches for homeowners keen to remortgage after just six months rose by 15%. This coincided with the Bank of England’s seventh consecutive base rate rise on 22nd September, suggesting some borrowers may have looked to lock into new deals ahead of further rate rises.
Elsewhere, criteria searches that consider a property’s energy performance certificate (EPC) climbed by 16%, as awareness around the potential savings afforded by an energy-efficient home continues to grow.
Alternative products prove popular with buyers
The data also reveals a 24% increase in searches for retirement interest-only (RIO) mortgages. In addition, criteria searches on behalf of buyers with missed mortgage payments increased by 11%.
Clare Beardmore, Director, Legal & General Mortgage Club “The number of criteria searches remained promisingly consistent from August to September despite various economic hurdles. However, though the volume may be similar, the type of searches show that the market is changing. September saw another large uptick in remortgage activity, as many five-year fixes came to an end. Anecdotally, it also seems that many homeowners are looking to remortgage and lock into a new deal as soon as possible, rather than wait until their current deal ends, driving activity levels further.“It’s clear that the market is moving very quickly and that’s why it’s so important that advisers have access to all the tools and tech they need. The right tech can help save advisers significant time, allowing them to keep pace with the market and better support their customers. We know that many advisers need all the support they can get, and this is something we’re working hard to deliver.”
Further information
Notes to editors
Established in 1836, Legal & General is one of the UK’s leading financial services groups and a major global investor, with £1.2 trillion in total assets under management (as at FY23) of which c40% (circa £0.5 trillion) is international.
We have a highly synergistic business model, which continues to drive strong returns. We are a leading international player in Institutional Retirement, in Retail Savings and Protection, and in both public and private markets through our Asset Management division. Across the Group, we are committed to responsible investing and dedicated to serving the long-term savings and investment needs of customers and society.
As at 7 June 2024, we estimate the Group’s Solvency II coverage ratio to be 224%.
As at 11 June 2024, Legal & General has a market capitalisation of £14.6 billion.
Legal & General Retail helps create brighter financial futures for all our customers. The division covers the savings, protection and retirement needs of our c.14 million retail policyholders and workplace members.
In 2023, we had total individual annuity sales of £1,431 million, and issued £299 million of Lifetime Mortgages and Retirement Interest Only Mortgages. Our Workplace pension platform served 5.2 million members, while our Protection businesses gave peace of mind to several million direct, group and US customers, taking in £1,991 million of UK and $1,584 million of US gross written premiums.