Overall mortgage search volumes by advisers increased by almost 80% in January, new analysis from Legal & General Mortgage Club has revealed.

The club’s SmartrCriteria data shows that demand among new buyers remains a strong driver of activity.

L&G’s data showed that first-time buyer searches jumped by 91% compared to December. This was paired with a rise in searches on behalf of first-time landlords, which climbed by 63%. 

Searches for those with gifted deposits also grew by 88% in January, indicating that much of the demand could have been backed by the Bank of Mum and Dad. Similarly, searches for landlords with gifted equity grew by 82%, which the mortgage club also suggested could indicate that those in the buy-to-let market may be benefitting from financial support from family members to boost their borrowing power.

Mortgage searches on behalf of borrowers with complex finances also soared between December and January, with the SmartrCriteria data revealing that searches by advisers for lenders willing to accept borrowers with an unsatisfied default jumped by 157% over the last month.

“There is still healthy demand in the mortgage market, but there are also signs that the cost-of-living squeeze is beginning to drive some borrowers to remortgage or find alternative mortgage solutions that help them better manage their finances,” commented L&G Mortgage Club director, Kevin Roberts.

“Advisers will have a critical role to play in helping many of these borrowers to secure a new fixed rate mortgage or find a lender that is willing to support those with more complex circumstances.

“When advisers are dealing with these volumes, or with a case that doesn’t quite fit lender criteria, the role of technology cannot be overstated. Automating processes such as administrative tasks can give advisers back time to focus on helping borrowers secure the right mortgage for their needs. Our research tools continue to be an ally to intermediaries, and we remain committed to helping support brokers through new tech where we best can.”

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