Mortgage lenders are restricting the maximum loan sizes available to higher income earners, new research published by Mortgage Broker Tools (MBT) has found.

According to the latest MBT Affordability Index, the maximum average loan size offered by lenders to applicants earning a household annual income of more than £100,000 fell in July to £657,000, down from more than £670,000 in March.

Data from the broker research platform revealed that this compares to much smaller reductions of less than £2,000 in the average maximum loan size available to households earning smaller incomes over the same period.

MBT CEO, Tanya Toumadj, said that while the cost of living crisis is having a “disproportionate impact” on borrowers on lower incomes, these latest figures still highlight how the increased living costs in the UK are impacting borrowers across all incomes.

“This data indicates that mortgage lenders are also restricting their appetite for lending large amounts to households on higher income levels, as appetite for risk contracts amidst the uncertain economic environment,” Toumadj commented.

“This means that it is harder for borrowers to secure the loan size they want, whatever their circumstances, but there are still options. Our data shows that 90% of mortgage enquiries for higher earners are still considered affordable by at least one lender, whilst this figure for all enquiries has remained consistent at 76%.

“The key in securing the right mortgage is research amongst a wide panel of lenders and MBT Affordability offers brokers the largest panel in the market, ensuring they maximise their opportunity to secure the most suitable deal for their clients.”

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