First-time buyer searches grew 64% in 2021:

Searches for mortgages suitable for first-time buyers (FTBs) rocketed by 64% compared to 2020 search data, says Legal & General Mortgage Club. In 2021, the top search term was still ‘visa’, second was: ‘loan to value’ and third was, ‘default satisfied’.

The reason for popularity of the visa search, Legal & General deduces, is because of potential foreign buyers looking to take advantage of the stamp duty tax break, this also helped with the FTB searches increasing so dramatically.

The club also noted that searches for ‘holiday lets’ grew 25% on the year in 2021.

Clare Beardmore who is head of broker and propositions at Legal & General also commented that: “The ongoing impact of the pandemic has been undeniable, re-shaping the types of property that buyers look for, and prompting a number of government initiatives that have seen market activity and house prices both surge.

“Moving further into 2022, we appear to be entering another phase for the sector, as we leave behind the rock-bottom rates that have dominated the market for so long.

“Just as we face further potential rate increases, many homeowners and prospective buyers have seen their household finances take a knock, with high energy prices and rising inflation driving a surge in the cost of living.

“SmartrCriteria data from December 2021 has already shown an 8% increase in searches around ‘payday loans’ and there will likely be further financial pressure on borrowers still to come.

“While we await our January 2022 data, we can look ahead to what this new year might bring. The current squeeze on affordability and uncertainty on future rates has the potential to shift borrowers’ preferences towards the comfort of a longer-term fixed rate product, or drive searches for interest-only mortgages that minimise monthly outgoings.”

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