New figures released by Mortgage Broker Tools (MBT) show that mortgage affordability rates for September were the highest that they have been for any month since the beginning of this year.
MBT uncovered this data by looking at every one of the applications that have been put through its platform, with this revealing that the maximum available loan per average applicant during September hit £254,821. By comparison, the figure for January was just £234,224, meaning that the top loan amount for last month was an increase of nearly 10% compared with the start of the year.
The company is stating that one of the main factors driving this big increase in affordability is the fact that the mortgage choice for people entering the market for the first time is much better now than it was at the beginning of 2021. First-time homebuyers were offered an average maximum loan of £276,060 last month, whereas in January, it was £230,555.
CEO of MBT Tanya Toumadj stated that the competition between mortgage lenders was leading to more products hitting the market, in addition to rates being slashed to record lows. She then went on to add that additional options to support those buying a first home had also been introduced by lenders, giving them the chance of affording a bigger loan than would have been possible before.
Mortgage advisors who have completed a CeMAP training course will be among those to benefit from this improvement in mortgage affordability, making this news that they will likely be delighted to see.