MBT: Loan size requested by remortgage customers rises
The average loan size requested by remortgage customers has risen from £183,471 in October to £198,829 in November, according to the latest MBT Affordability Index.
Looking to the average loan size requested by home movers, this has fallen from £248,950 to £238,000, month-on-month.
In addition, the maximum average loan size available to home movers declined from £318,571 to £307,440 over the same timeframe.
For first-time buyers, the minimum average loan size available to customers in this category fell to £130,333 in November, from £140,828 in October.
The index also noted that the average maximum loan available to mortgage borrowers in November was £278,145, while the average minimum loan was just £133,166.
According to the firm, this difference is more than the average price of a property in the North East of England, which is £136,262, according to ONS.
Tanya Toumadj, chief executive at Mortgage Broker Tools, said: “One of the purposes of the MBT Affordability Index is to demonstrate the vast spread in loan sizes that are available from different lenders to customers with the same set of circumstances.
“And there are few clearer ways of demonstrating this than showing that it’s possible to buy a whole property using the difference in the average loan sizes available.
“With this is mind, it’s absolutely vital for brokers to shop around to ensure that they choose the lender that best matches their clients’ requirements.
“It won’t always be the same lender, or set of lenders, and while we have seen a relatively consistent picture in the spread of maximum and minimum available average loan sizes available, there has been plenty of movement from individual lenders and within particular niches.
“Staying up to date with all of these changes can be time consuming and difficult.
“This is why it’s so important that customers seek professional advice from a mortgage broker, and that brokers make use all the technology they have available to them, including platforms like MBT Affordability, which can help them to carry out more extensive research, more accurately and more quickly.”