Searches of interest only mortgages increase by 53 per cent of the month of June, data from Legal & General's Ignite platform has revealed.
The data showed that this rise led to interest only mortgages becoming the most common search term in June.
Legal & General said this highlights that borrowers could be looking to reduce their monthly costs for a period of time before switching back to a capital repayment mortgage if rates become more favourable.
This rise coincided with a 40 per cent increase for Help to Buy.
Additionally, an increased demand from first-time buyers was also discovered, with searches on behalf of first-time buyers over June rising by 14 per cent compared to the previous month.
Similarly, searches in relation to affordability increased by 21 per cent and searches in relation to minimum income increased by 17 per cent.
These increases point to a "resilience" in the market and among first time buyers, however, Legal & General called for "more to be done" to address affordability for the demographic.
Buy to let was also examined in the data and a 32 per cent increase in searches for 'multi-unit freehold blocks' and a 38 per cent increase in searches for rental income was reported.
This highlights that landlords are a "key driver" in the market as these buyers could be looking to maximise rental income, as rents across the UK continue to rise.
Similarly, searches for top slicing rose by 49 per cent in June, while searches in relation to regulated buy-to-let increased by 15 per cent.
Legal & Technology head of mortgage products and transformation, Jodie White, said: “It’s clear that the mortgage market remains robust despite ongoing issues with affordability, rising interest rates and stubborn inflation.
"It’s positive to see that market activity is still being driven by specific sectors including buy-to-let, overseas buyers, and by increased demand for particular property types.
“During this time, it’s vitally important that advisers implement new technologies to best manage demand for mortgage advice across various sectors."
White added that advice is incredibly important right now and that advisers have a "crucial role to play" in supporting buyers and ensuring they have access to the full range of options available to them.
tom.dunstan@ft.com
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