Gap between maximum and minimum loan sizes widens: MBT


The gap between maximum and minimum average loan size is at its widest since Mortgage Broker Tools began reporting data on this market more than 18 months ago.

The platform’s June Affordability Index found that the gap between the minimum and maximum loan offered to an average mortgage customer was over £133,000.

That’s around 28 per cent up from just over £104,000 last June, and the highest since MBT started recording this data in January 2021, when the gap was just over £104,000. £88,000, around 50% more than last month.

However, the report adds that while the range of loan sizes available to mortgage applicants is greater than ever before, the proportion of mortgage applications where customers are offered the amount of loan they want remains stable at 76%.

Mortgage Broker Tools Managing Director Tanya Toumadj 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 from 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.”

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