New data from Mortgage Broker Tools shows that the overall level of mortgage affordability in the UK has fallen to its lowest point for this year up to now.
These figures were derived from its research platform for mortgage advisors, and they reveal that average minimum mortgage loans available from lenders in July were slightly above £136,000. By contrast, the average minimum that people were able to borrow back at the start of the year was £150,000, so there has been quite a steep fall in that half-year period.
There has also been a small month-on-month drop in the average maximum mortgage loan available. The figure for July was £270,000, whereas for the month before, it was slightly higher than £274,000.
Mortgage Broker Tools also looked at how many lenders there currently are offering high mortgage loan-to-income deals and found that the number had fallen to 22 from 27 over the past two weeks. This suggests fewer lenders willing to take a risk on borrowers who want mortgages well above their current incomes.
Speaking to Financial Reporter, the Mortgage Broker Tools CEO Tanya Toumadj said that there was some evidence that prices would fall to balance things.
She then added:
“As proven time and again throughout the unpredictable pandemic years, the answer to ensuring a client gets the best deal in a complex environment is comprehensive research and reliable data, backed up by technology.”
Advisors with CeMAP training are increasingly conscious of the need to use tech solutions to source suitable loans.
