MAB: January mortgage apps up 26%

According to its latest national mortgage index, the average LTV on mortgage applications for purchases remained steady at 72% in January 2012, compared to January 2011. 

The average deposit put down by mortgage applicants was £56,167 last month, up 7.4% over the period.

Similarly, the average purchase price in January stood at £194,512, which was up 7.77% from January 2011.

The average loan size on purchase mortgage applications hit £138,345 in January, up from £128,202 in January 2011. While average incomes of purchase borrowers increased only slightly by 5.81% to £35,327 over the period.

Mortgage Advice Bureau found the number of mortgage products available through intermediaries in January 2012 was up year-on-year from 5,410 in January 2011.

Brian Murphy, head of lending at Mortgage Advice Bureau, said: “More lenders have entered the high LTV arena with further deals being offered at 90% and even 95% of a property’s purchase price or value. This is good news for prospective first-time buyers and for those home movers with low levels of equity as the perception of many potential borrowers is that mortgages are only available to those with a 20% or more deposit."

Murphy added that the housing market will remain broadly similar in size to 2011 with activity levels remaining subdued. 

Yesterday, figures from the Council of Mortgage Lenders (CML) revealed that gross mortgage lending in January rose 10% year-on-year to £10.5bn as market sentiment improved, but was down 14% on December’s total of £12.2bn.

The CML highlighted that pressure on mortgage pricing and availability has also eased as funding conditions have improved since the turn of the year.