Lower rates and higher LTVs 'not enough to reignite the mortgage market': Knowledge Bank

October was another active month for lenders and brokers alike, with Knowledge Bank recording 5,211 criteria changes, although this marked a drop from September’s 8,326 updates.

There were 2,671 new criteria added in the month and October saw over 91,000 criteria searches by brokers, with brokers increasingly leaning on searches to navigate affordability pressures. 

The top search was “maximum age at end of term,” which climbed from 8th position in September, signalling how borrower affordability remains front and centre in conversations. 

Another notable mover was “self-employed – 1 year’s accounts,” which jumped from 46th to 17th.

Criteria changes were widespread, but the “maximum incomes used” field stood out, with 12 residential lenders updating their policies. 

Even niche areas showed activity: “tronc payments,” for example, saw updates from 20 lenders, reflecting the industry's focus on real-world income.

Shane Chawatama, sales director at Knowledge Bank, commented: “It’s going to be intriguing to see how the next few months unfold. There’s still a significant number of borrowers needing to come off fixed deals. 

"While lenders are making positive moves by lowering rates and increasing LTVs, it doesn’t yet feel like enough to reignite the remortgage market. The upcoming Budget may influence some decisions, but it won’t be the silver bullet many customers might be hoping for.”