Average maximum loan decreased in September

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September saw the average maximum loan size available to remortgage clients and home movers increase, according to the latest MBT Affordability Index.

The index found that the average maximum loan available to remortgage clients was £279,671 in September, compared to £268,184 in August. For home movers, the average maximum loan in September was £324,975, which was up from £317,750 in August.

However, lenders were more conservative when it came to loan sizes for first time buyers, with the average maximum loan size falling to £277,467 in September – down from £282,076 in August. This meant that the average maximum loan available for the whole market fell slightly in September to £283,355, from £284,880 in August.

Tanya Toumadj (pictured), CEO at Mortgage Broker Tools, said: “Service is a big issue for lenders at the moment and adjusting affordability appetite is one tool they use to help manage periods of high demand. Consequently, we’ve seen numerous changes across the lender calculators, and while affordability options have improved for some customers, they have become more restrictive for others.

“Without technology, staying on top of this ever-changing market can prove a real headache for brokers. Fortunately, a platform like MBT Affordability can help reduce the time taken to research the market and give brokers more certainty that they are choosing the most suitable product in a constantly changing market.”

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