Loan size gap available to mortgage applicants hits record high

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“This month’s MBT Affordability Index saw a significant decrease in the average minimum loan size available to customers.”

The latest MBT data shows that in June 2022 the gap between the minimum and maximum loan available to an average mortgage customer reached over £133,000. This is a substantial increase from just over £104,000 in the same month of 2021, and the highest since MBT started recording this data in January 2021, when the gap was just over 88. £000.

While the range of loan sizes available to mortgage applicants is wider than ever before, the proportion of mortgage applications where customers are offered the loan amount they want remained stable at 76%.

Tanya Toumadj, CEO of Mortgage Broker Tools, said: “Rising cost of living is now factored into lenders’ affordability calculators. The impact of this is greatest on low-income earners and as such, this month’s MBT Affordability Index recorded a significant decrease in the average minimum loan size available to customers. As a result, we are seeing a greater disparity between the maximum and minimum loans available to borrowers.

“However, there are still lenders able to provide the loan amounts requested by borrowers and our data shows that more than three quarters of mortgage applications are still able to obtain the loan amount requested at least one lender.

“In this environment, thorough research with a broad group of lenders is essential to ensure customers are able to access the loan amount they need. Where before that might have meant endless paperwork and hours on the phone, a technology platform is now a broker’s best weapon – and MBT Affordability is the most comprehensive panel of lenders around. This should be the first step for brokers looking to ensure their clients are getting the best deal possible. »

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