October saw brokers working with a significant number of borrowers who have recently started a new role, according to new analysis by Knowledge Bank.

With an estimated 1.32 million people re-joining the jobs market in October because of the end of the furlough scheme, Knowledge Bank reported a rise in brokers in the residential arena searching for “time in employment”.

Alongside people in new jobs, Knowledge Bank’s findings also found that brokers also increased the number of searches for “self-employed – one year’s accounts”, demonstrating that along with new starters, brokers are also working with a substantial number of clients who have set up their own businesses recently.

The findings, from Knowledge Bank’s criteria tracker, revealed that borrowers were stretching finances in October with “income multiple used for affordability assessment” being the second-most searched term in October. “Missed or late payments” also featured in the residential market, and “capital raising for debt consolidation” and “mortgage or secured loan arrears or defaults” were amongst the most searched in the second charge market.

Knowledge Bank operations director, Matthew Corker, commented: “With the end of furlough, brokers are working with a number of clients who have started new roles, and lenders have reacted, loosening criteria for borrowers starting new jobs.

“This follows a raft of criteria changes related to self-employed borrowers. By reducing restrictions imposed on freelancer applicants, lenders demonstrated that overall, they are confident that the economy is returning to normal.

“There are still a huge number of vacancies across sectors, and there will undoubtedly be more new starters in the coming months, so this may well be an area that lenders continue to look at.”

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