Interest Only - another surge in demand online

Searches for interest-only mortgages rose a hefty 51 per cent in the past month as buyers seek to improve affordability.

Research data from Legal & General Ignite suggests that despite demand lenders are most likely to consider applicants with a solid repayment plan to pay off the capital at the end of the term.

There’s also been a surge in searches for shared ownership - a 32 per cent rise in the past month.

Kevin Roberts, managing director, Legal & General Mortgage Services, says: “As interest rates settle into a steadier groove, it is encouraging to see a steady stream of borrowers making inroads into the property market, with the number of searches made on behalf of borrowers growing month-on-month since June.

“We have seen particularly high interest in shared ownership and interest-only products, a reflection of both the recent decision to maintain the base rate and longstanding affordability concerns in the market. While the Bank of Family has long been a major player in the property market, our data is also a robust reminder that family support isn’t always the only pathway to homeownership.

“Notwithstanding these positive pockets of demand, the market remains a complex puzzle to navigate for advisers, borrowers, and lenders alike. It is important that advisers continue to work on their business, as well as within it, particularly as we continue to battle economic uncertainty.

“For borrowers, it is crucial to remember the two key benefits of seeking guidance from a qualified mortgage adviser; access to products not available on consumer comparison websites, and the expertise gained from years of practice.”

Searches for buy to let products is solid - perhaps surprisingly given the challenges for the sector - with demand up one per cent; searches for regulated buy to let rose 15 per cent.