FTB affordability improves 20% since start of year: MBT

Essex Home Finance
The average maximum loan size available to first-time buyers was £276,060 in September, up from £230,555 in January.
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Mortgage affordability for first-time buyers has improved by 20% since the beginning of the year, the latest index from Mortgage Broker Tools suggests.

Analysis of cases processed through the MBT platform shows that overall mortgage affordability reached its highest level all year in September as  the average maximum loan size available increased by nearly 10% to £254,821 in September compared to £234,224 in January.

This increase was primarily driven by improved options for first-time buyers. The average maximum loan size available to first-time buyers was £276,060 in September, up from £230,555 in January.

MBT chief executive Tanya Toumadj says: “It’s a very competitive lender landscape at the moment and that means more options for borrowers. 

“Cutting rates is one way for lenders to get an edge, but it’s not the only way and we’ve seen improved choice at higher LTVs and lenders making changes to their affordability calculators to become more competitive. 

“At MBT, we’ve also seen the introduction of new ways for first-time buyers to enhance their affordability options, with results that show the benefits of combining an equity loan with a first charge mortgage, and this has certainly helped to boost the average loan size available to this group of customers.”

Original Article from Mortgage Strategy 19/10/21

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