Mortgage affordability hit a 2021 high in September, with the average maximum loan size available up by nearly 10% compared to the start of the year, new findings from Mortgage Broker Tools (MBT) have revealed.
Analysis of cases processed through the MBT research platform shows that the maximum loan size available to an average customer was £254,821 in September, compared to £234,224 in January.
MBT suggested the increase was primarily driven by improved options for first-time buyers.
According to its latest MBT Affordability Index, the maximum loan size available to an average first-time buyer was £276,060 in September, which is up from £230,555 in January.
MBT CEO, Tanya Toumadj, said: “It’s a very competitive lender landscape at the moment and that means more options for borrowers. Cutting rates is one way for lenders to get an edge, but it’s not the only way and we’ve seen improved choice at higher LTVs and lenders making changes to their affordability calculators to become more competitive.
“We’ve also seen the introduction of new ways for first-time buyers to enhance their affordability options, with results that show the benefits of combining an equity loan with a first charge mortgage, and this has certainly helped to boost the average loan size available to this group of customers.
“The latest MBT Affordability Index shows that even though the maximum loan size available is at its highest point this year, a quarter of cases are still deemed to be unaffordable by lenders, so it’s really important that brokers carry out thorough research amongst as many providers as possible.”
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